This report covers the work undertaken by the Executive Board of the clean development mechanism from 17 October 2015 to 17 September 2016, which focused on improving the mechanism and expanding its use in the international response to climate change. Despite an increase in project registration in 2016 compared with in 2015, demand for certified emission reductions remains low compared with in the first commitment period of the Kyoto Protocol, which ended in 2012. This report 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 twelfth session.