There are several discrepancies in the construction of the article on CDM compared to the other flexibility mechanisms. Therefore, an Annex I country could forego domestic measures completely and use credits obtained through the CDM to meet its obligations. The article on CDM differs because Parties can begin accruing CER credits in 2000. Therefore, baseline emission levels must be developed. Article 6 contains a provision to include projects that enhance carbon sinks.
Sinks are natural ecosystems such as forests that sequester carbon.
A baseline on emissions must be established in order to measure net reductions in GHG emissions. Therefore, a top-down approach to baseline setting may be the most efficient. In a top-down approach the government would set the baseline and ensure industry compliance. Governments will be motivated to set accurate baselines because they will not want to risk over-selling emission credits and a breach of the Protocol. The obvious advantages of using a top-down baseline system are that costs of regulation are minimized and project implementation would be streamlined.