The dissertation aims to shed light on the perspectives related to technological
advancement opportunities of developing countries under the Kyoto Protocol. Central in the present research is the Clean Development Mechanism (CDM) of the Kyoto Protocol facilitating generation of tradable carbon credits by implementing 'green' projects in developing countries. In addition to the primary goal of reducing greenhouse gases (GHG), CDM is also expected to promote transfer of modern GHG abatement technologies and expertise in developing countries. The dissertation studies the technological impact of the CDM projects, with a particular focus on technological learning and capability building. The first part of the dissertation assesses climate change mitigation related knowledge base in the developing countries, in order to understand the local technological conditions in which CDM initiatives emerge, as well as to understand the role of technological knowledge in these initiatives. Second part analyses the knowledge and expertise building within the context of organizations and companies dealing with CDM projects. The study in this part is based on the survey of CDM project implementing companies in Brazil, India, China and Mexico.