The Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change allows emission reduction projects in developing countries to earn certified emission reductions (CERs), which can be traded and used by industrialised countries to fulfil part of their emission reduction obligations under the Kyoto Protocol. The CDM was forecasted to follow an investment model where the private sector in industrialised countries would invest in emission reduction projects in return for CERs, yet most projects, contrary to initial expectations, are not financed by foreign...

In the past two decades, China has received the lion's share of direct foreign investment and has evolved from an insulated society into the world's second largest economy. In recent years international observers have noted that China has become increasingly assertive in world economic affairs, which is supported by the Chinese government's declared strategy of developing Shanghai into one of the world's leading financial and commercial centers. With the slogan "Better City Better Life" the World Expo 2010 was a pivotal event aimed at demonstrating to the world that Shanghai is an attractive,...