The thesis examines the effects of the Clean Development Mechanism (CDM), a flexible mechanism under the Kyoto Protocol, on the Indian wind power sector. Indian wind power has captured a large share of the global CDM market, while the country has had progressive policies for development of renewable energy sectors since the mid-1980s. The thesis explores three issues where the CDM could have a presumed effect through interviews with national, regional and local stakeholders in the Indian wind power industry and villagers living in nearest vicinity of wind power sites under the CDM in Jaisalmer, Rajasthan. The framework for analyzing the CDM is grounded on two approaches to policymaking; ecological modernization and sustainable development. Informants in the wind power companies industry characterized revenue from CDM as “add-on” and “cream on the pudding.” Interviews with informants show that many wind power projects in India would have materialized without the additional incentives provided by the CDM and CERs. Therefore, there is reason to question if Indian wind power projects registered as CDM satisfy the additionality criteria. The fieldwork interviews also reveal that there has not been any technology transfer to the Indian wind power sector under the CDM.