The commission has ruled that only new CDM projects registered in Least Developed Countries (LDCs) will be eligible for inclusion in the EU Emissions Trading Scheme (ETS) from the start of its third phase in 2013.

That has enormous consequences for the CDM, because the EU is the largest source of demand for the credits, and the vast majority of registered projects have come from China and India — neither of which qualifies as an LDC.

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