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There is growing concern about the impact that increased emissions of certain gases, known as "greenhouse gases", are having on the global climate. Because of this, the Kyoto Protocol has been established to limit emissions of greenhouse gases.
Under the Kyoto Protocol, industrialised countries and those in transition to a market economy (the so-called "Annex I countries") have agreed to limit or reduce their emissions of these greenhouse gases.
The Protocol sets quantified emission limitations and reduction obligations with respect to a basket of six gases. Of these, carbon dioxide (CO2), which derives from the burning of fossil fuels such as coal, oil and gas, is the most important. Methane (CH4) and nitrous oxide (N2O) emissions are also substantial contributors to the problem.
The six greenhouse gases addressed by the Kyoto Protocol are:
Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
See Glossary and reference for the relative greenhouse impact of these gases.
The "Annex I Countries" are those that have taken on emission reduction or limitation targets under the Kyoto Protocol. The targets define the amount of greenhouse gases that the countries are allowed to emit in the 'commitment period' of 2008 to 2012, relative to the amount emitted in 1990. These targets represent either a cut in emissions or a lower rate of increase in emissions.
To achieve its emission targets, the Annex I country is expected to make changes to reduce domestic greenhouse gas emissions. It can also make use of the three 'Kyoto Mechanisms' to assist in reaching its targets.
See Glossary and reference for the individual country targets. More specific details are included in Country information.The Kyoto mechanisms
The three Kyoto mechanisms are:
Joint Implementation (JI): emission reductions which arise from project investments in other countries with their own Kyoto emission targets - other Annex I countries
Clean Development Mechanism (CDM): emission reductions arising from project investments in developing countries which don't have their own Kyoto emission targets - non-Annex I countries
International Emissions Trading: portions of Annex I country's emission allowances can be bought and sold on an international carbon trading market.
The principle on which the mechanisms are based is that the benefit to the global environment is the same wherever greenhouse gas emission reductions occur, so it is better to reduce emissions where the cost is lowest. This assumes that the country hosting the project will directly benefit from it as well.
The CCPO helps UK business take advantage of the opportunities provided by the JI and CDM project mechanisms.
To come into force, the Kyoto Protocol must be ratified by at least 55 countries, including Annex I countries accounting for at least 55% of this industrialised group's emissions in 1990.
To view the current status of ratification of the Kyoto Protocol, visit www.unfccc.int/resource/kpthermo.html
For more information about individual countries in relation to climate change projects, select the country of interest from our Country information section.
The following countries have signed up to the Kyoto Protocol - the so-called 'Annex I' countries - and have been assigned an emission reduction target:
Australia**, Austria, Belgium, Bulgaria*, Canada, Croatia*, Czech Republic*, Denmark, Estonia*, Finland, France, Germany, Greece, Hungary*, Iceland, Ireland, Italy, Japan, Latvia*, Liechenstein, Lithuania*, Luxembourg, Monaco, Netherlands, New Zealand, Norway, Poland*, Portugal, Romania*, Russian Federation*, Slovakia*, Slovenia*, Spain, Sweden, Switzerland, Ukraine*, United Kingdom, United States of America**
* Countries that are undergoing the process of transition to a market economy
** The USA and Australia have declared their intention not to ratify the Kyoto Protocol, and therefore they will not adopt Kyoto emission reduction targets.
You can find more information about the Kyoto Protocol under Frequently asked questions.