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.