Kyoto Protocol

What is the Kyoto Protocol?

The Kyoto Protocol operationalizes the United Nations Framework Convention on Climate Change by committing industrialized countries and economies in transition to limit and reduce greenhouse gas (GHG) emissions in accordance with agreed individual targets. The Convention asks those countries to adopt policies and measures on mitigation and to report periodically.

The establishment of flexible market mechanisms based on the trade of emissions permits is an important mechanism of the Kyoto Protocol. While countries must meet their targets primarily through national measures, the Protocol also offers three market-based mechanisms to help them meet those targets:

• International Emissions Trading System (ETS)

• Clean Development Mechanism (CDM)

• Joint implementation (JI)