What is Wrong with the Kyoto Protocol?
The objective of the Kyoto Protocol is to impose binding greenhouse gas (GHG) emission targets for the world’s industrial economies and former communist economies of Europe (“Annex I” countries) to be achieved by the period 2008-2012. By directly binding emissions, policymakers presumably believed that they could achieve the goals of the UNFCCC through political commitment. Given that fixed targets for emissions by Annex I countries have been agreed, although not yet ratified in key countries, the main issues currently being debated are how to minimize the costs of the Kyoto Protocol and how to bring developing countries into the agreement. The issues of cost minimization and developing country participation are clearly recognized in the Kyoto Protocol. Costs are addressed through provision for international trading of emission allowances among the countries that accept binding targets. In addition, the Protocol provides for a Clean Development Mechanism, under which agents from indust
