This paper seeks to demonstrate the "additionality" of energy efficiency projects within the framework of the Clean Development Mechanism (CDM). Specifically, it demonstrates that the credits granted to greenhouse gas (GHG) emissions reductions from energy efficiency projects do reduce emissions compared to the baseline, as opposed to acting as a "free rider" as a project that would have happened irrespective of the projects. The paper then addresses the readiness of projects in South Africa for the CDM as well as the national incentives and barriers to their deployment.