The 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change is the first document that establishes legally binding limits on emissions of carbon dioxide and other greenhouse gases for industrialized countries. The Kyoto Protoc...
The 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change is the first document that establishes legally binding limits on emissions of carbon dioxide and other greenhouse gases for industrialized countries. The Kyoto Protocol incorporates three distinct mechanisms of cooperation, facilitating implementation of the parties’ obligations of trans-boundary emissions reduction: a target-based emissions trading system(Emission Trading), a project-based transfers of credits among Annex I countries(Joint Implementation) and, finally, a project-based transfers of credits between Annex I countries and non-Annex I countries(Clean Development Mechanism). The future of the Kyoto Protocol hinges largely on how these market mechanisms are operated to realize the full potentials for cost-effective emissions reduction. Another issue related to the long-term sustainability of the Protocol regime is obtaining commitments from developing countries as it is widely acknowledged that the objective of eliminating the threat of global warming cannot be achieved through reducing industrialized country emissions alone. Thus, the closer involvement of developing countries in efforts to combat climate change is inevitable.