The document discusses implications of US policy developments for the Clean Development Mechanism (CDM). It outlines reasons the US opposes the CDM, including concerns that it subsidizes China's emissions and benefits certain asset classes disproportionately. It then summarizes the Waxman-Markey climate bill and implications for international carbon markets if the US engages, including allowing limited international offsets and establishing sectoral crediting approaches. Countries are advised to understand US policy directions and engage domestically to influence the emerging international framework.