During 2006 the CDM market in Malaysia became established and by December 2007 a total of 20 Malaysian projects had registered with the CDM Executive Board. The Kyoto Protocol defines the Annex 1 countries, as countries that are obliged to reduce their greenhouse gas (GHG) emissions and the clean development mechanism (CDM) allows Annex 1 countries to develop projects, which contribute to emission reduction, in non-Annex 1 (developing) countries. Currently, two projects have been corrected due to request for review and there is one project for which review is requested. Two projects have been rejected by the Executive Board. The broad knowledge of CDM in Malaysia and the number of successful projects are partly due to the well-functioning CDM institutional framework in Malaysia. As an illustration this article focuses on a Malaysian-Danish project and describes the implementation of CDM in Malaysia and refers to this specific project. The project was registered with the CDM Executive Board in May 2007 and is a methane avoidance project in which methane is captured from a landfill and used to generate electricity.