Kyoto Protocol
Definition of 'Kyoto Protocol'An international agreement that aims to reduce carbon dioxide emissions and the presence of greenhouse gases. Countries that ratify the Kyoto Protocol are assigned maximum carbon emission levels and can participate in carbon credit trading. Emitting more than the assigned limit will result in a penalty for the violating country in the form of a lower emission limit in the following period. |
|
Investopedia explains 'Kyoto Protocol'The Kyoto Protocol separates countries into two groups. Annex I includes developed nations, while Non-Annex I refers to developing countries. Emission limitations are only placed on Annex I countries. Non-Annex I nations participate by investing in projects that lower emissions in their own countries. For these projects, they earn carbon credits. These credits can be traded or sold to Annex I countries, which allow them a higher level of maximum carbon emissions for that period. |
Related Definitions
Articles Of Interest
-
Clean Or Green Technology Investing
Innovations in energy and consumption grow as companies adopt them to reduce costs. -
What Is International Trade?
Everyone's talking about globalization, so we explain what is it and why some oppose it. -
Getting Into International Investing
Diversifying can mean not only investing in various asset classes but also venturing beyond domestic exchanges. -
What is the carbon trade?
The carbon trade came about in response to the Kyoto Protocol. Signed in Kyoto, Japan, by some 180 countries in December 1997, the Kyoto Protocol calls for 38 industrialized countries to reduce ... -
Playing The Big Winners In U.S. LNG
For U.S. producers of natural gas, exporting that bounty is seen a necessary way to profit from higher demand overseas as well as higher prices. The potential of those exports received a major ... -
Investors Already Thinking Recovery For Cummins
Cummins is still bottoming, but the Street is already thinking recovery -
Advanced Energy Industries Hanging On For The Turn
AEIS is cyclically down, but far from out. -
Halliburton Has Gotten Interesting Again
If oilfield activity has bottomed, Halliburton would be a good pick here. -
Schlumberger Looks Good At Today's Prices
Schlumberger remains the best of breed in the oil services sector, and the price is getting attractive. -
A Slimmed Down Vestas Hopes For More Than Just Survival
Vestas is clearly struggling, but may just manage to do more than survive.
Free Annual Reports