UNDP has been working closely with the Government of India in various strategic areas of development interventions. As one of the implementing agencies of the GEF, UNDP is contributing towards resource mobilization for addressing global environment issues. Clean Development Mechanism (CDM) is an important and innovative international financial cooperation mechanism that can play a significant role in mitigating climate change and promoting sustainable development in the long run. UNDP primarily seeks to contribute to an effort to mobilize and leverage additional CDM resources for an enhanced contribution to rural development and poverty alleviation.

Five state agencies namely, Punjab Energy Development Agency (PEDA), Maharashtra Energy Development Agency (MEDA), Rajasthan Energy Development Agency (REDA), Environment Protection, Training & Research Institute (EPTRI) and Environment Management & Policy Research Institute (EMPRI) have been identified with the Ministry of Environment & Forests for capacity building exercise. These agencies would be each developing 2-3 Project Concept Notes and Project Design Documents with hands on approach. If the project is successful further agencies may be identified for capacity building in the second phase.