What is the Kyoto Protocol?

Kyoto Protocol is also known as Kyoto Accord, a framework that binds industrial countries to play their role to the cleaner environment under the United Nations Climate Change Charter. Kyoto Protocol is a global agreement that focuses on the reduction of carbon dioxide discharge and greenhouse gases presence. Kyoto Protocol signatory countries are allowed the utmost level of carbon discharge and can contribute to the credit trading of carbon. It is considered a serious violation if any country crosses the designated threshold of carbon emission. Hence, as a penalty against emission violation, the violating country has to reduce its emission to a lower level during the coming period. The name of Kyoto Protocol has been assigned to this agreement because the agreement took place in the Japanese city of Kyoto in 1997. The application of Kyoto Protocol is on six types of greenhouse gases that have been listed IN UNFCCC Annex A. 

What Does the Kyoto Protocol Do?

Kyoto Protocol divides countries into Annex I and Non-Annex I, according to the level of industrial emission. Developed countries have been placed in Annex I as their industrial emission is extremely high in volume. In comparison, the developing countries have been listed in Non-Annex list. These states contribute to the reduced emissions within their territories by making investments in lower scale emission projects. This benefits Non-Annex I countries in earning carbon credits. Annex I countries purchase these carbon credits from Non-Annex I countries to increase their industrial activities because these credits permit Annex I countries a larger amount of carbon emission.