The Kyoto Protocol is an international agreement that commits countries to reduce emissions of carbon dioxide and other greenhouse gases. Countries that ratify the protocol must reduce their emissions through domestic measures or carbon trading if their emissions are not decreasing. Carbon trading allows countries or companies to buy and sell credits representing one ton of carbon dioxide. While carbon trading provides benefits like reduced emissions and revenue for developing nations, it also allows industries to purchase pollution rights rather than implementing greener technologies and lacks a centralized global framework.