Last December representatives of 160 nations met in Kyoto, Japan, and developed the world's first legally binding plan for cutting emissions of greenhouse gases. Because emissions have been steadily increasing since 1990, the actual cuts will be much larger. The Climate Change Convention commits all countries to take voluntary action on climate change. The Kyoto agreement gives countries flexibility in how they make and measure emissions reductions.
Wealthy countries can also receive credit for investing in clean-air projects overseas.
Such programs could greatly reduce the cost of compliance. In two weeks of talks, government ministers meeting in Buenos Aires will begin to decide how to achieve the goals set in Kyoto. Diplomats may decide how to monitor compliance with the Kyoto treaty and what to do about chronic violators. Options could range from a simple suspension of voting rights at future meetings to some form of economic sanctions. The country making the investment would receive credit for cutting emissions, while the host country would benefit from new technology and a cleaner environment.