Skip to main content

Kyoto Protocol flexibility mechanisms

Short answer

The Kyoto Protocol's three flexibility mechanisms are Emissions Trading (AAUs traded among Annex I countries), Joint Implementation (ERUs from projects in Annex I countries), and the Clean Development Mechanism (CERs from projects in developing countries). They allow emission reductions to be made where they are cheapest because climate impact is global.

Describe in brief the three flexibility mechanisms identified in the Kyoto Protocol.

The Kyoto Protocol (adopted 1997, in force 2005) set binding greenhouse gas reduction targets for developed (Annex I) countries. To help them meet targets at lower cost, it created three flexibility mechanisms.

1. Emissions Trading (Article 17)

Annex I countries that have emitted less than their allowed amount (assigned amount units, AAUs) can sell the spare units to countries that exceed their limits. One unit equals one tonne of CO₂e.

2. Joint Implementation (JI, Article 6)

An Annex I country invests in an emission-reduction project in another Annex I country (often an economy in transition) and earns Emission Reduction Units (ERUs).

3. Clean Development Mechanism (CDM, Article 12)

An Annex I country invests in a project in a developing country (such as Nepal) and earns Certified Emission Reductions (CERs). It also helps the host country achieve sustainable development. CDM is the only mechanism that involves developing countries.

MechanismBetweenCredit
Emissions tradingAnnex I – Annex IAAU
JIAnnex I – Annex IERU
CDMAnnex I – non-Annex ICER

These mechanisms work on the principle that the climate does not care where emissions are reduced, so they should be cut where it is cheapest.

✓ Answer checked by Claude Opus 5.5 (high effort)

Related questions

All Energy Environment and Society chapter 2 questions →