Consider the following statements: 1. Clean Development Mechanism (CDM) in respect of carbon credits is one of the Kyoto Protocol Mechanisms. 2. Under the CDM, the projects handled pertain only to the Annex-I countries. Which of the statements given above is/are correct?

Statement 1 is correct. The Clean Development Mechanism (CDM) is indeed one of the three market-based mechanisms established under the Kyoto Protocol. It allows Annex I (developed) countries to invest in emission-reduction projects in non-Annex I (developing) countries and earn carbon credits (Certified Emission Reductions or CERs) to meet their emission reduction targets. Statement 2 is incorrect. Under the CDM, the projects are implemented in non-Annex I countries (developing countries), not in Annex-I countries. The goal is to help developing countries achieve sustainable development and contribute to global emission reduction, while providing Annex I countries with a flexible way to meet their commitments. Projects between Annex I countries fall under Joint Implementation (JI). Therefore, only statement 1 is correct, making A the right option.