This report covers the work of the Executive Board of the clean development mechanism (CDM) during the period from 27 October 2011 to 13 September 2012. It highlights achievements and challenges faced by the Executive Board in its supervision of the mechanism, the status of the mechanism, and work undertaken by the Board and its support structure in the areas of accreditation, methodologies, registration and issuance, and other areas. Further, it includes a number of recommendations for action by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at its eighth session. The CDM is suffering a lack of demand for its certified emission reductions due to the time being taken to agree on ambitious emission targets. In this context, the mechanism's ability to spur private and public-sector action on climate change and sustainable development is severely limited. There is an increasing risk of the CDM losing its momentum, and with it, losing the related intellectual and institutional capacity that has been built up among Parties and other stakeholders. This is outside the control of the CDM Executive Board