What is the mechanism established by the Kyoto Protocol for collaborative climate change projects between two Annex 1 countries?

The Kyoto Protocol introduced several mechanisms aimed at facilitating the reduction of greenhouse gas emissions among participating countries, particularly in relation to those categorized as Annex I countries, which are developed nations with binding emission reduction targets. One of these mechanisms is termed Joint Implementation (JI).

Joint Implementation allows countries with emission reduction commitments (typically those in Annex I) to invest in greenhouse gas reduction projects in other Annex I countries as a means of fulfilling their own climate obligations. Through this mechanism, the investing country can earn emission reduction units (ERUs) that count towards their own targets. This collaborative approach is designed to reduce the overall costs associated with achieving emission reductions while promoting investment in potentially more cost-effective projects across borders.

Other options, such as the International Collaboration Framework, Emission Trading System, and Carbon Credit Exchange, do not specifically refer to the collaborative project mechanism established solely between Annex I countries under the Kyoto Protocol. Instead, they either cover different aspects of climate finance or emissions trading mechanisms that may include broader participation or different structures.