The Kyoto Protocol establishes three flexibility mechanisms—emissions trading, JI and CDM—to provide economic incentives for parties to seek out cost-effective emissions reduction opportunities and to promote sustainable economic development. The cost ofreducing GHG emission varies markedly across emissions source, geographic region and from country to country. The flexibility mechanisms seek to capitalize on this variability by allowing parties to meet their emissions reductions obligations outside their own country where more economical emissions reduction opportunities may be available. The Protocol, itself, does not impose any concrete limits on the extent to which a party may make use of the flexibility mechanisms, but it does state that domestic action must constitute a significant element of a party's emissions reductions, and that the use of the flexibility mechanisms should be a '(...) supplement to domestic action'.77
Was this article helpful?