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This investigation classifies Mexican states according to their strength for attracting clean development mechanism (CDM) projects, as a means to promote economic development from donating Annex I countries of the Kyoto Protocol. We calculated that 46.5 per cent of all cdm projects are concentrated in the states of Jalisco, Coahuila, Puebla, Durango and Veracruz. The study classifies the 32 Mexican states using cluster analysis, based on three dimensions: potential to achieve gas reductions, institutional capacities to tackle the environment; and the general investment climate. The technique creates five clusters where the key variable responds to greenhouse gas reduction projects. Findings have implications both for cdm policies, their federal and state coordination, and also for invest- ment readiness by some states that demonstrate institutional capabilities, but where State-owned Pemex and CFE have shown low attraction of projects and shallow institutional commitment. The paper contributes to analyze the distribution of this type of projects at sub-national level, and their pulling and limiting forces. [ABSTRACT FROM AUTHOR]