At a time when energy supply is crucial for development and reducing emissions is vital for mitigation of Climate Change, Renewable energy comes forth as a possible solution. The Clean Development Mechanism provides a subsidy to developing countries to reduce emissions of behalf of the developed world. The impacts from these projects affect the local sustainable development of the communities where they are located. The Study investigates the local impacts from Renewable Energy CDM projects that have come up in Tamil Nadu, India. The projects are evaluated on Development Indicators and selected CDM criterion including Additionality and Leakage. The evidence from the field suggests that some impacts from CDM Projects upon communities (especially agricultural) may be negative. In addition, the evaluated CDM criterion investigated highlights the difficulties of actual implementation. The following study will be of use to students, academics and those who wish to gain an understanding of the present global climate policy and the Indian renewable energy policy regimes.