After investigations into the United Nations run, Carbon Credit system, there are fears the scheme may be predominantly pointless. The Clean Development Mechanism (CDM) encourages businesses in developing countries to cut greenhouse gasses by rewarding them with cash handouts. The companies are given money to use towards environmentally friendly schemes, however it seems that developing businesses are already becoming environmentally sound off their own backs. Evidence suggests that in India, money has been put towards changes which would have been made regardless of sponsorship. One company has been earning astounding amounts from the scheme, possibly as much as $500 m (£250 m) over ten years!

These findings undermine the usefulness of the scheme, reinforcing doubts that CDM solely has actually contributed very little towards cutting emissions, therefore not proving particularly proactive in the battle against global warming.

Yvo De Boer, the man at the top of CDM defended the companies fundamentals, "We've got a procedure that works," however he also admitted that there was a possibility for flaws in the system "At the end of the day it's always a matter of judgement ... and no, it's not watertight."

To receive Carbon Credits from the CDM companies must prove that they will cut gas emissions, additional to those that they intended to reduce before the offer of credits. The buyers of the credits are developed western companies, often in Europe who use them to meet targets, this proves cheaper than cutting emissions in their factories and offices. Essentially the programme aims to give Western companies a low cost way to control their gas emissions, whilst getting businesses in developing countries involved in reducing climate change.

Three Indian companies, receiving money to aid emission cuts have been investigated; one was already undergoing changes before it became involved in the scheme and a said it would have continued with its changes regardless of the money it was given. The second received money exceeding the costs of the amendments it made, the third company was in dispute over whether it really deserved to be part of the scheme.

More than 1,000 companies have already qualified for Carbon Credits, a further 3,000 have applied and the trade in CDM Carbon Credits runs at $10bn per year. Whilst the interaction, trade and environmental awareness built between developed and developing nations can only be positive, this system needs to be refined to produce a more meritable contribution in the battle against global warming.

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