The developing country could acquire technology and capital investment as well as a share of credits it could sell or bank. The company could acquire a share of credits it could use to meet its emissions reduction commitments at home. In an emissions trading system, countries and their authorized private entities will be able to purchase emissions allowances from each other. Each country's binding target determines how many allowances it has. Joint implementation pairs organizations in industrialized and developing countries for projects that reduce greenhouse gas emissions such as reforestation.
Forests remove carbon dioxide from the atmosphere as trees take it in and breathe out oxygen.
The proposal was warmly welcomed by the U.S. and other industrialized countries, but India and other developing nations viewed the amendment procedure as setting a precedent they might not wish to follow. Argentina is expected to announce details of its voluntary commitment during the high-level part of the meeting which opens Tuesday. One obstacle to ratification of the Kyoto Protocol by the U.S. Senate is the perception that developing countries such as India and China, who will soon surpass the United States as the largest emitter of greenhouse gases in the world, are not governed by the Protocol. But the stalled ratification process has not prevented the U.S. from working with developing countries to help them limit their emissions. The government of India and the United States resolve to work closely together with other countries to develop international rules and procedures for the Kyoto Mechanisms including the Clean Development Mechanism.