There are continuous debates around the question of whether CDM really contributes to sustainable development (SD) in host countries. Employment impact is an essential indicator of SD. Based on an input-out approach this research builds a quantitative assessment model to evaluate the employment impacts of CDM. Both direct and indirect jobs creation and job losses of CDM projects in the power sector registered by the end of 2011 are calculated by project types and power grids where the project is located. Results of this study show that, although the above mentioned CDM projects causes about 99,000 net direct job losses, they also create about 3.08 million indirect jobs, resulting in the gross employment of CDM to be about 2.98 million. Thereof, hydro projects induce both direct and indirect job losses, which comes to approximately 0.89 million. Solar projects have the most potential since they own the highest indirect jobs created by one GWh generation, about 104 jobs/GWh. (c) 2013 Elsevier Ltd. All rights reserved.