Kyoto Protocol

An international agreement connected with the United Nations Framework Convention on Climate Change adopted in 1997 that commits 37 industrialized countries to reducing greenhouse gas (GHG) emissions under the principle of “common but differentiated responsibilities.” Developed nations can meet their binding targets through nationwide measures or by way of three market-based mechanisms stated in the Treaty – emissions trading, clean development mechanism, and joint implementation – all cost-effective way of stimulating green investment. (adopted in 1997, enforced in 2005)