This report analyses existing Clean Development Mechanisms (CDM) methodologies and makes specific recommendations on how cities can improve their access to climate finance through the use of Urban CDM and addresses three important questions: “Is the Clean Development Mechanism the right instrument to provide carbon finance to carbon emission mitigation activities in cities/urban areas?”; “Under which circumstances can the CDM be best applied for the major emission sources in cities?”; “What is the status of CDM in urban areas? What are the existing barriers and what are the solutions that will offer cities access to carbon finance?”.