The Kyoto Protocol is basically an amendment to the existing convention of the UN which is the UN Framework Convention on Climate Change and it deals with the current situation of global warming. It also states that the developed countries have to pay and supply technology to developing or undeveloped countries for climate-related and projects and investigations. Thus, those countries that have signed or are going to sign this treaty agree to reduce their greenhouse gases including carbon dioxide, water vapour and ozone. Furthermore, they can also carry out emissions trading which is simply the selling emission credit by those who are unlikely to exceed their cap of pollution set forth by the governments of countries.

This cap that is set forth by the governments of countries is simply that governments grant polluting firms a certain allowance and if these firms feel that they would...