This section forms a summary of this report, “Long-term prospects of CDM and JI”. The report is based on a research project carried out by the Öko-Institut and ZEW for the Federal Environmental Agency in Germany. The project’s aim is the evaluation of the medium- and long-term potential of the Clean Development Mechanism (CDM) and Joint Implementation (JI). Furthermore, cost reduction effects brought about by the use of flexible mechanisms, associated barriers and risks as well as framework conditions and instruments to foster the use of flexible mechanisms are analysed.