The impact that the CDM will have on developing-country stakeholders will vary, depending on: the objectives and priorities of those stakeholders; the planning and regulation in place to ensure that projects address these objectives and priorities; and the current land use and organisation in which CDM projects will be built. CDM can offer developing country governments the opportunity to promote and attract investment in sustainable forestry, land restoration, energy efficiency and renewable energy projects. For a project developer, it may offer the additional input required to make a project financially viable. For a local farmer, it may provide an additional source of income, or access to technical support.

The way in which the CDM rules and procedures evolve will depend on numerous factors, many of which can still be influenced by developing-country stakeholders. However, if the process of developing and regulating CDM projects is not properly planned, some of these potential opportunities may not materialise, or may even turn into problems. Section 2 addresses how developing countries can prepare for the CDM and ensure that the needs of the land use sector are addressed. Section 3 discusses potential pitfalls of unplanned development of the CDM in developing countries.