What commodity market was created by the Kyoto Protocol?

The Kyoto Protocol, an international treaty adopted in 1997 and entered into force in 2005, established a framework for countries to reduce greenhouse gas emissions. One of the key mechanisms introduced by the Protocol was International Emissions Trading. This system allowed countries that had emission reduction targets to sell their excess allowances to countries that were struggling to meet their targets.

This market aimed to incentivize reductions where they could be achieved most cost-effectively. By creating a financial incentive for pollution reductions, the Kyoto Protocol aimed to drive investment in cleaner technologies and promote sustainable development, effectively harnessing the economic principles of supply and demand for pollution allowances.

The other choices do not align with the specific frameworks established by the Kyoto Protocol. International renewable energy credits and international biodiversity trading refer to different systems that are not directly a result of the Kyoto Protocol. Global water trading, while a relevant environmental issue, is not a commodity market established under this treaty. Therefore, the establishment of International Emissions Trading is the accurate identification of a commodity market created by the Kyoto Protocol.