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The Kyoto Protocol was adopted in

Kyoto, Japan, on 11 December 1997 and
entered into force on 16 February 2005.
184 Parties of the Convention have
ratified its Protocol to date. The
detailed rules for the implementation
of the Protocol were adopted at COP 7
in Marrakesh in 2001, and are called the
“Marrakesh Accords.”

The five principal concepts of the Kyoto Protocol

are:

 Commitments to reduce greenhouse gases

that are legally binding for annex I countries
Under the Treaty, countries must meet
 Implementation to meet the Protocol
objectives, to prepare policies and measures which their targets primarily through national
reduce greenhouse gases measures. However, the Kyoto Protocol
 Minimizing impacts on developing countries
by establishing an adaptation fund for climate
offers them an additional means of
change meeting their targets by way of three
 Accounting, reporting and review to ensure market-based mechanisms.
the integrity of the Protocol;
 Compliance by establishing a compliance
committee to enforce commitment to the Protocol.

Emissions trading, as set out in Article 17 of

 Emissions trading – known as “the the Kyoto Protocol, allows countries that have
emission units to spare - emissions permitted
carbon market" them but not "used" - to sell this excess capacity to
 Clean development mechanism countries that are over their targets.
Thus, a new commodity was created in the
(CDM) form of emission reductions or removals. Since
 Joint implementation (JI). carbon dioxide is the principal greenhouse gas,
people speak simply of trading in carbon. Carbon
is now tracked and traded like any other
commodity. This is known as the "carbon market."

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The Clean Development Mechanism (CDM),
defined in Article 12 of the Protocol, allows a
country with an emission-reduction or emission-
limitation commitment under the Kyoto Protocol
(Annex B Party) to implement an emission-
reduction project in developing countries. Such
projects can earn saleable certified emission
reduction (CER) credits, each equivalent to one
tonne of CO2, which can be counted towards
meeting Kyoto targets.
Conference of the Parties - the Conference of the
Parties to the Convention.
Convention - the United Nations Framework
Convention on Climate Change, adopted in New
York on 9 May 1992.
Intergovernmental Panel on Climate Change - the
Intergovernmental Panel on Climate Change
established in 1988 jointly by the World
Meteorological Organization and the United
Nations Environment Programme.
 Enhancement of energy efficiency
 Protection and enhancement of "sinks and reservoirs" and
"promotion of sustainable forest management practices”
 Promotion of sustainable forms of agriculture
 Increased use of new and renewable forms of energy
 Phasing out of "market imperfections," (fiscal incentive,
tax exemption and subsidies)
 Reforms in relevant sectors which limit or reduce emissions
of greenhouse gases
 Limit and/or reduce emissions in the transport sector
 Limit and/or reduce methane through waste management
 Limit and/or reduce emissions from aviation and marine
bunker fuels
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The mechanism known as “joint
implementation,” defined in Article 6 of the
Kyoto Protocol, allows a country with an
emission reduction or limitation
commitment under the Kyoto Protocol
(Annex B Party) to earn emission reduction
units (ERUs) from an emission-reduction or
emission removal project in another Annex
B Party, each equivalent to one tons of CO2,
which can be counted towards meeting its
Kyoto target.
Montreal Protocol - the Montreal Protocol on
Substances that Deplete the Ozone Layer, adopted in
Montreal on 16 September 1987 and as subsequently
adjusted and amended.
Parties present and voting - Parties present and
casting an affirmative or negative vote.
Party - unless the context otherwise indicates, a Party
to this Protocol.
Party included in Annex I - a Party included in Annex I
to the Convention, as may be amended, or a Party
which has made a notification under Article 4,
paragraph 2 (g), of the Convention.
Annex I Parties shall, "individually or
jointly" reduce carbon dioxide equivalent
emissions listed in Annex A (list of six
greenhouse gases) not to exceed amounts
assigned in Annex B (list of specific targets
for each Annex Party i.e. U.S. = 7%; EU =
8%; Japan = 6%) below 1990 levels "in the
first commitment period 2008 to 2012.
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Australia - 108% (2.1% Finland - 92% Liechtenstein - 92% Russian Federation -

of 1990 emissions) 100% (17.4%)
(0.4%) (0.0015%) Any Parties included in Annex I that have
Austria - 92% (0.4%) France - 92% (2.7%) Lithuania - 92% Slovakia - 92% (0.42%)
reached an agreement to fulfill their commitments
Belarus - 95% (subject Germany - 92% Luxembourg - 92% Slovenia - 92% () under Article 3 jointly, shall be deemed to have
to acceptance by other (7.4%) (0.1%)
parties)
Spain - 92% (1.9%)
met those commitments provided that their total
Belgium - 92% Greece - 92% (0.6%) Monaco - 92%
(0.8%) (0.0015%) combined aggregate anthropogenic carbon dioxide
Sweden - 92% (0.4%)
Bulgaria - 92%
(0.6%)
Hungary - 94%
(0.52%)
Netherlands - 92%
(1.2%)
equivalent emissions of the greenhouse gases
Canada- 94% (3.33%) Iceland - 110% New Zealand - 100% Switzerland - 92% listed in Annex A do not exceed their assigned
(0.02%) (0.19%) (0.32%)

Croatia - 95% () Ireland - 92% (0.2%) Norway - 99% Turkey()

amounts calculated pursuant to their quantified
(0.26%) emission limitation and reduction commitments
Czech Republic - Italy - 92% (3.1%) Poland - 94% Ukraine - 100%
92% (1.24%) (3.02%) inscribed in Annex B and in accordance with the
Denmark - 92%
(0.4%)
Japan - 94% (8.55%) Portugal - 92%
(0.3%)
United Kingdom - 92%
(4.3%)
provisions of Article 3.
Estonia - 92% Latvia - 92% (0.17%) Romania - 92% United States of America -
93% (36.1%) (non-party)
(0.28%) (1.24%)

One year prior to the start of the first

commitment period, each Party shall have Annex I Parties may "transfer or
in place "a national system for the acquire...emission reduction units"
estimation of anthropogenic emissions" providing that such emissions trading
using methodologies accepted by the
agreements results in reductions that are
Intergovernmental Panel on Climate
Change (IPCC). Methodologies for "additional to any that would otherwise
calculating "global warming potentials" occur."Guidelines for the implementation of
shall be accepted by the IPCC and reviewed this Article, including verification and
by the relevant subsidiary body of the COP. reporting," are to be further elaborated at
the first session of the Parties after the
protocol enters into force.

Annex I Parties shall modify their Information submitted under Article 7

reporting procedures required by the FCCC, "shall be reviewed by expert review teams"
to reflect compliance with the commitments created by the COP. Expert review teams
required by this protocol. The first session "shall be coordinated by the secretariat" and
of the Parties after the protocol enters into shall be "selected from those nominated by
force, "shall adopt guidelines for the
the Parties...and appropriate
preparation of the information required
under this Article...and decide upon intergovernmental organizations."
modalities for the accounting of assigned Guidelines for review "shall be adopted"
amounts." later.

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Requires a periodic review of the
protocol "in the light of the best
available scientific information."
(Defined by COP II to be the report of
the IPCC).
Developed country Parties shall:
"Provide new and additional financial resources to
meet the agreed full costs incurred by developing
country Parties in advancing the implementation of
existing commitments;
Also provide such financial resources, including
for the transfer of technology, needed by the
developing country Parties to meet the agreed full
incremental costs of advancing the implementation of
existing commitments."
"The Conference of the Parties, the supreme body of
the Convention, shall serve as the meeting of the Parties
to this Protocol." The parties to the Protocol may or may
not be the same as the Parties to the Convention.
Therefore, decisions relating to the Protocol shall be
taken only by Parties to the Protocol which is the same as
the COP sitting as a Meeting of the Protocol (MOP),
however, those Parties of the Convention that are not
Parties to the Protocol participate as "observers" and
may not participate in the decisions of the MOP.
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 "Concern the energy, transport and industry sectors as
well as agriculture, forestry and waste management.
 Cooperate in "effective modalities for the development
application and diffusion of..., facilitate and
finance...the transfer of, or access to, environmentally
sound technologies, know-how, practices and
processes...”
 Develop "observation systems" to reduce uncertainties
related to the climate system
 Promote "at the international level...the strengthening
of national capacity building, human and institutional
capacities...personnel to train experts in the field”
"A clean development mechanism is hereby defined."
The purpose of the clean development mechanism is to
"assist Parties not included in Annex I in achieving sustainable
development."
The clean development mechanism "shall be subject to the
authority" of the COP and shall be "supervised by an executive
board of the clean development mechanism."
The clean development mechanism shall "assist in
arranging funding of certified project activity," and provide
"independent auditing and verification of project activities."
The COP "shall ensure that a share of the proceeds from
certified project activities is used to cover administrative
expenses as well as to assist developing country Parties...to meet
the costs of adaptation."
The Secretariat of the Convention
shall serve as the Secretariat of the
Protocol.
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The subsidiary bodies of the
Convention and the Bureau (executive
officers) of the Convention shall serve
mutatis mutandis to the Protocol, with
provisions for non-Parties to the
Protocol to be replaced by Parties to
the Protocol for "decisions taken under
this Protocol."
The Conference of the Parties shall define the
relevant principles, modalities, rules and guidelines, in
particular for verification, reporting and accountability
for emissions trading. The Parties included in Annex
B may participate in emissions trading for the
purposes of fulfilling their commitments under Article
3. Any such trading shall be supplemental to domestic
actions for the purpose of meeting quantified emission
limitation and reduction commitments under that
Article.
The provisions of Article 14 of the
Convention on settlement of disputes shall
apply mutatis mutandis to this Protocol.
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The Conference of the Parties serving as the
meeting of the Parties to this Protocol shall, as soon as
practicable, consider the application to this Protocol
of, and modify as appropriate, the multilateral
consultative process referred to in Article 13 of the
Convention, in the light of any relevant decisions that
may be taken by the Conference of the Parties
The Conference of the Parties serving as the
meeting of the Parties to this Protocol shall, at its first
session, approve appropriate and effective procedures
and mechanisms to determine and to address cases of
non-compliance with the provisions of this Protocol,
including through the development of an indicative
list of consequences, taking into account the cause,
type, degree and frequency of non-compliance.
The Protocol may be amended by
consensus, if possible, or by "a three-fourths
majority of the Parties present and voting."
Amendments enter into force "for those
Parties having accepted it" on the 90th day
after instrument of acceptance is received by
the Depositary from at least three fourths of
the Parties to the Protocol.
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Annexes, or amendments to the Annexes
of the Protocol, "other than Annex A or B"
(list of gases and list of Annex I Parties)
enter into force six months after adoption
except for those Parties that have "notified
the Depositary in writing within that period
of their non-acceptance."
The Secretary-General of the United
Nations shall be the Depositary of this
Protocol.
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Each Party shall have one vote. Regional
economic integration organizations may
vote as a bloc unless a single member wishes
to vote separately, in which case all members
must vote separately.
The Protocol "shall be open for signature
at United Nations headquarters in New York
from 16 March 1998 to 15 March 1999," and
shall be open for accession from the day
after the period closes.
The Protocol shall enter into force on the
90th day after 55 Parties to the Convention,
"incorporating Parties included in Annex I
which accounted in total for at least 55
percent of the total carbon dioxide
emissions for 1990 of the Parties included in
Annex I," have deposited instruments of
ratification, acceptance, approval or
accession.
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No reservations may be made to

this Protocol.

Any Party may withdraw from this ANNEX A: GREENHOUSE GASES AND
Protocol after three years by giving written SECTORS/SOURCE CATEGORIES
Greenhouse gases
notification to the Depositary. Withdrawal
Carbon dioxide (C02)
takes effect one year from date of receipt of
Methane (CH4)
notification. Withdrawal from the
Nitrous oxide (N20)
Convention constitutes automatic
Hydrofluorocarbons (HFCs)
withdrawal from the Protocol.
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)

Industrial processes
Mineral products
Sectors/source categories Chemical industry
Metal production
Other production
Energy Production of halocarbons and sulphur hexafluoride
Consumption of halocarbons and sulphur hexafluoride
Fuel combustion Other
Energy industries
Solvent and other product use
Manufacturing industries and
construction Agriculture
Enteric fermentation
Transport Manure management
Other sectors Rice cultivation
Agricultural soils
Other Prescribed burning of savannas
Field burning of agricultural residues
Fugitive emissions from fuels Other
Solid fuels Waste
Oil and natural gas Solid waste disposal on land
Wastewater handling
Other Waste incineration
Other

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Australia 108 Monaco 92

Austria 92 Netherlands 92
Belgium 92 New Zealand 100
Bulgaria* 92 Norway 101
Canada 94 Poland* 94
Croatia* 95 Portugal 92
Czech Republic* 92 Romania* 92
Denmark 92 Russian Federation* 100
Estonia* 92 Slovakia* 92
European Community 92 Slovenia* 92
Finland 92 Spain 92
France 92 Sweden 92
Germany 92 Switzerland 92
Greece 92 Ukraine* 100
Hungary* 94 United Kingdom of Great
Iceland 110 Britain and Northern Ireland 92
Ireland 92 United States of America 93
Italy 92
Japan 94
Latvia* 92 *Countries that are undergoing the
Liechtenstein 92 process of transition to a market
Lithuania* 92 economy.
Luxembourg 92