Abstract: With a brief introduction of the background and framework of programmatic clean development mechanism (P-CDM) projects, the dilemma of developing P-CDM projects was analyzed, including the approval process in the designated national authority (DNA), technical barriers in the project design phase, the validation and verification processes undertaken by designated operational entity and the sale of emission reductions. From the perspective of policy choices, the paper gives some advices on above-mentioned issues, i.e., the DNA should further improve the management approach, make full use of advances of industry organizations and scientific research institutes in solving the technical problems in P-CDM development, promote and strengthen the construction of P-CDM market via 'Mass Effect', and cooperate with relevant parties in simplifying the international rules to really reduce transaction costs of P-CDM project development.

Key words: clean development mechanism, dilemma, public policy