What is the Kyoto Protocal

     The Kyoto Protocol is a code of behavior set up for the United Nations Framework Convention on Climate Change (also referred to as UNFCCC or FCCC). This is an international environmental treaty. Their goal is to achieve “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” This means that the Kyoto Protocol establishes a legally binding commitment for the reduction of four main greenhouse gases: carbon dioxide, methane, nitrous oxide, and sulfur hexafluoride. The Kyoto Protocol also focuses upon two groups of gases produced by annex I, which are industrialized nations. These gases are hydro fluorocarbons and per fluorocarbons.

     As of January 2009, 183 parties have joined and ratified the protocol. Noticeably absent is the United States. The protocol was first adopted in 1997 in Japan. Under the Kyoto Protocol, the industrialized countries agreed to reduce their collective green house gas emissions by a minimum of 5.2% from their green house gas emissions in 1990. National limitations range from the reduction of 8% for the European Union and others to 7% for the United States, 6% for Japan, and 0% for Russia. The treaty permitted the emission increases of 8% for Australia and 10% for Iceland.

     The Kyoto protocol deals with all flexible mechanisms. This includes emissions trading, the clean development mechanism, and joint implementation. These things allow industrial countries to meet their green house gas emissions limitations. This works through the purchase of green house gas reduction credits. These are found through financial exchanges and projects that reduce emissions in non-industrialized companies. There are financial incentives in place to develop green house gas emission reduction projects. This plan instills the use of carbon credits. These carbon credits can be sold to buyers attempting to lower their greenhouse gas emissions. This encourages sustainable country development. This allows low green house gas emitting industries with high prevailing environmental standards to purchase carbon credits. This means that they can purchase these credits internationally in comparison to reducing green house gases domestically.

     There are many industrialized countries that have green house gas portfolios. These countries include Japan, Canada, Italy, Germany, France, and Spain. The countries as well as others, support actively promoting government carbon funds, as well as supporting multilateral carbon funds. They work closely together to lower the use of utility, energy, oil, gas and chemical conglomerates, as well as encourage them to acquire green house gas certificates.