Climate change is likely to have a significant impact on the global environment and human society.
In 1997 more than 150 countries adopted the Kyoto Protocol and agreed to set actual targets for the reduction of greenhouse gases. These reductions must be made by the first compliance period, 2008-12. Governments are considering strategies to make these reductions at minimal cost to national economies. Market mechanisms provide the essential flexibility that enables countries to achieve their emission targets at lowest cost. The Parties included in Annex B may participate in emissions trading for the purpose of fulfilling their commitments under Article 3.