Kyoto Protocol

The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change. It calls for a reduction of greenhouse gas emissions in order to prevent “dangerous anthropogenic interference with the climate system.”  The Kyoto Protocol was agreed to December 11th, 1997 at the 3rd Conference of the Parties held in Kyoto, Japan and entered into force February 16th, 2005 and has been ratified by 183 parties as of 2008. The Kyoto Protocol commits industrialized country signatories -- 40 Annex I countries plus the EU as a whole -- to reduce their greenhouse gas emissions by an average of 5.2% compared with 1990 emissions in the period 2008-2012. 

Under the Kyoto Protocol, countries mandated to reduce emissions may choose from several policy options, including reducing domestic emissions through a carbon tax , cap-and-trade , or subsidization. They may also acquire emissions reduction credits from abroad through the "flexible mechanisms," international emissions trading, which allows trading emissions permits between member states, or purchasing emissions reductions credits (CERs and ERUs, respectively) from project-based mechanisms, Clean Development Mechanism and Joint Implementation.  The CDM allows industrialized countries to support projects in developing countries while JI locates projects in the economies in transition of Eastern Europe and the former Soviet Union.  The Kyoto Protocol's flexible mechanisms theoretically use the market to locate emissions reductions where they can be achieved at the lowest cost, as developed countries will fund equivalent projects abroad to preserve economically important but environmentally harmful industries.  This has the additional benefit of encouraging sustainable development in the developing world. 

Signatory countries have been assigned different goals under the Kyoto Protocol.  Specific figures range from 8% reductions for the European Union to 7% for the United States, 6% for Japan and for Canada, though Canada has opted to follow an alternative reductions schedule, postponing its Kyoto Protocol targets, and 0% for Russia.  The Kyoto Protocol permitted GHG emission increases of 8% for Australia and 10% for Iceland; some larger increases are permitted in Europe's less developed nations.  In December 2007, newly sworn in Australian Prime Minister Kevin Rudd signed the Kyoto Protocol after Labor’s victory over the Liberals.  The United States and Kazakhstan are the only signatory nations that have not ratified the treaty.  The vast majority of signatories, including Brazil, China and India, are classified as Non-Annex I or developing countries and have no obligation beyond monitoring and reporting emissions.  However, these countries have an important role under Kyoto: hosting projects through the Clean Development Mechanism that reduce emissions and are used as compliance mechanisms by Annex I countries. Any Annex I country that fails to meet its Kyoto Protocol obligation will be penalized by having to make up the difference plus an additional 30% and will be suspended from making transfers under an emissions trading program.

Participation in the Kyoto Protocol: green indicates states parties, yellow indicates states with ratification pending, and red indicates those that signed but declined ratification of the treaty.

(Source: Wikimedia Commons.)