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KYOTO PROTOCOL

Saving our planet can also be a profitable endeavour.

Eco Global Markets offers the private investor an opportunity to not only help to reduce carbon emissions globally but to do so in a fashion that allows for profit in an ethically sound fashion. Since the Kyoto Protocol was ratified in 2005 the vast majority of industrialised nations are legally bound to reduce their carbon emissions by 2012. Any emissions exceeding set targets must be offset by the purchase of carbon credits, leading to the emergence of carbon credit markets.

What is the Kyoto Protocol?

The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. It was adopted in Kyoto, Japan, in 1997 and came into force in February 2005.

The Convention encouraged industrialised countries to stabilise greenhouse gas emissions – the Protocol commits them to reduce to specified targets, based on an average of 5% against 1990 levels over the five-year period 2008 – 2012. By ratifying the Protocol, the countries are bound by the targets.

The Protocol allows for several “flexible mechanisms”, such as emissions trading, the Clean Development Mechanism (CDM) and Joint Implementation (JI) to allow industrialised nations to meet their emission targets by purchasing carbon credits: over-the-counter (OTC), through financial exchanges, from projects that reduce emissions in other industralised nations (JI), or from non-industralised countries (CDM).