Kyoto Protocol

To counter climatic changes various initiatives have been taken around the world.

UNFCCC - United Nations Framework Convention for Climate Change under the flag ship of United Nations (UN) signed an agreement among the participating countries in Japan in 1998 for joint effort against the cause and reducing carbon emissions, terming it as Kyoto Protocol. Kyoto Protocol till date has been ratified by 165 countries.

Kyoto Protocol identifies countries on the basis of distinctions, Annex I Countries and Non- Annex countries. Each of the participating country in Annex I have to reduce their carbon emissions to a certain level or targets identified for them.

Kyoto also identifies various mechanisms by which this reduction can be achieved.

The three Kyoto mechanisms are:

Joint Implementation (JI): emission reductions which arise from project investments in other countries with their own Kyoto emission targets - other Annex I countries.

Clean Development Mechanism (CDM): emission reductions arising from project investments in developing countries which don't have their own Kyoto emission targets - non-Annex I countries.

International Emissions Trading: portions of Annex I country's emission allowances can be bought and sold on an International carbon trading market.