Legally binds nations to reduce greenhouse gas emissions- came into force on Feb 6, 2005- Cuts are not uniform-US and Australia did not sign as Bush said it would damage American economy; Major industrializing economies like India and China were not covered by its provisions until 2012, the logic being that developing nations should not be made to pay a price for late industrialization- Countries can buy “emission credits” (earned by reducing emissions below the mandated levels) from countries that do not need them to stay below their emission quotas .There is a provision for CDM which encourages investment in developing countries for promoting transfer of environment-friendly technologies.
