This report assesses opportunities and challenges for the Clean Development Mechanism (CDM) in sub-Saharan African countries, namely Burkina Faso, Democratic Republic Congo (DRC), Ethiopia, Malawi, Mali, Mozambique, Rwanda, Senegal, Tanzania, Uganda, and Zambia. It analyses the technical potentials for CDM projects per sector as well as a review of the Kyoto infrastructure and an evaluation of Grid Emissions Factors. Sectors evaluated for CDM potentials include, energy efficiency, waste potentials, transportation potentials and other potentials such as mining, cement & charcoal production. It also analyses cross-cutting issues such as the role of Programmes of Activities (PoAs), innovate financing approaches as well the opportunities of Public Private Partnerships. The report notes that in Africa, the CDM’s performance is very limited. So far there are 44 registered CDM projects in Africa making up for 1.9 per cent of the total number of registered CDM projects. The overall pipeline amounts to 143 projects in Africa, making up for 2.6 per cent of the global CDM project pipeline. It further argues that CDM in Africa does not perform as well as in other regions due to economic underdevelopment, high interest rates, high corruption, limited access to finance, as well as limited human and technical resources and lack of institutional capacity. The report concludes that among all 11 selected countries, Ethiopia offers the largest emission reduction potential, amounting to 32.0 million Certified Emission Reductions (CERs) per year. The most significant sector is the energetic use of agricultural residues followed by hydropower, forest residues and cooking stoves. Tanzania is second to Ethiopia with an overall abatement potential of 24.5 million CERs/yr. Most dominant sectors are again agricultural residues, hydropower followed by forest residues and cooking stoves. Third, DRC offers an overall emission reduction potential of 18.1 million CERs/yr, with major abatement sectors being forest residues, agricultural residues and cooking stoves. Uganda features a total abatement potential of 17.7 million CERs/yr. Besides forest residues and agricultural residues, its most important sectors are geothermal power and wood residues. Mozambique features an overall abatement potential of approx. 8.7 million CERs. Major potentials are seen in the agricultural residue sector, forest residues and in efficient charcoal production. Zambia’s total emission reduction potential was estimated at 6.5 million CERs/yr, important sectors are agricultural residues, forest residues, charcoal sector, sugar industry and coal mining industry. Senegal’s overall emission reduction potential was estimated at 6.1 million CERs/yr, with hydropower and agricultural residues being important. Burkina Faso’s abatement potential amounts to 3.0 million CERs/yr and Rwanda’s abatement potential was estimated to 2.3 million CERs/yr.