In the context of CO₂ emission and Global Warming, what is the name of a market driven device under the UNFCCC that allows developing countries to get funds/incentives from the developed countries to adopt better technologies that reduce greenhouse gas emissions?

Answer: (c) Clean Development Mechanism

Under the CDM, developed countries invest in emission-cutting projects in developing countries and earn credits (CERs).

The idea

For the climate it does not matter where a tonne of carbon is cut. Cutting it is usually cheaper in a developing country (an old power plant, an open landfill). So a rich country pays for a cleaner project there and counts the saved emissions against its own Kyoto target.

Rich country has a binding target → Cutting at home is costly → Funds a clean project in a developing country → Emissions saved are certified → Credits (CERs) go to the rich country → Developing country gets money and technology

Why the others are wrong

(a) A carbon footprint measures emissions, it is not a funding tool.

Also know

Kyoto has three market mechanisms: the Clean Development Mechanism, Joint Implementation (a project in another developed country) and Emissions Trading. India hosted the second-largest number of CDM projects after China. A 2% share of CDM credits pays for the Adaptation Fund. Under the Paris Agreement the CDM is replaced by the Article 6.4 mechanism.