Kyoto Mechanisms are also known as Flexible Mechanisms and they include Emissions Trading, the Clean Development Mechanism and Joint Implementation to lower the cost of achieving emission targets.
- Please note that Flexible Mechanisms and Carbon Sink were included at the COP 6 at Bon in Germany.
- Emission Trading: Emissions Trading-mechanism allows parties to the Kyoto Protocol to buy ‘Kyoto units'(emission permits for greenhouse gas) from other countries to help meet their domestic emission reduction targets.
- Joint Implementation: Any Annex I country can invest in emission reduction projects (referred to as “Joint Implementation Projects”) in any other Annex I country as an alternative to reducing emissions domestically. Joint Implementation is based upon the Article 6 of the Kyoto Protocol. Under article 6, any Annex I country can invest in emission reduction projects in any other Annex I country as an alternative to reducing emissions domestically. The idea is to lower the cost of complying with their Kyoto targets by investing in greenhouse gas reductions in an Annex I country where reductions are cheaper, and then applying the credit for those reductions towards their commitment goal.
- Clean Development Mechanism (CDM): Countries can meet their domestic emission reduction targets by buying greenhouse gas reduction units from (projects in) non Annex I countries to the Kyoto protocol.