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The Clean Development Mechanism (CDM) is the Kyoto Protocol mechanism. The Mechanism has two main objectives; to assist Annex I Parties to cost-effectively fulfil part of their emission reduction targets under the Kyoto Protocol, and to help non-Annex I Parties in achieving sustainable development. When the CDM entered into force on 16 February 2005, its implemented projects, in non-Annex 1 developing countries, created certified emission reductions (CERs). So the project participants can sell to Annex I Parties to help them meet their Kyoto Protocol targets, they can also provide complementary benefits to non-Annex I Parties such as new investment, climate friendly technology transfer and know-how, skills development, employment..etc Based on the literature review, none of the studies assessed the clean development mechanism from the point of comparative benchmarking anaylsis between several countries. Most of the studies focused solely on the carbon climate and its economics away from the overall country business climate, competition and investment policies. Attrating foreign direct investments , even for environmental purposes , is an economic activity and there is a need to assess and test how to integrate the promotional activities for environmental projects into the country investment promotion strategy. J. Environ. Sci. Institute of Environmental Studies and Research – Ain Shams University Vol.33, No.1, Jun. 2016 212 This study was conducted in order to propose a model and action plan to benefit from the clean development mechanism in order to attract foreign direct investment to Egypt. To be able to gather the necessary data, the researcher utilized descriptive method using both qualitative and quantitative approaches. Herein the chosen responded governmental officials were selected from the assigned Egyptian ministries responsible for investment and environmental affairs. Structured interviews was the research method used for data gathering to evaluate the challenges that facing the inclusion of clean development mechanism within Egypt’s investment opportunities, and to reach out the potential sector and targeted foreign countries to invest in Egypt’s CDM projects. The compiled values and statistical analysis utilized the official data released from the UNFCCC secretariat along with the official investment data of Egyptian General Authority for Investments and Free Zones and the official reports of related global indicators. The results of the study may help the decesion maker to integrate more the environmental projects into the investment policies. Despite the uncertainity that might shape the future of CDM, the researcher would like to stress on the need to capitalize on CDM benfits and to learn from the other peer developing countries experience. The proposed model may be used as a catalyst towards more integration of the CDM framework into the country investment climate and doing business activities. Figure (1): List of Suggested Sectors & Countries to Target in CDM

PROPOSED MODEL FOR THE USE OF CLEAN DEVELOPMENT MECHANISM TO ATTRACT FOREIGN DIRECT INVESTMENT TO EGYPT