The Kyoto Protocol was established in 1997 under the UNFCCC to encourage countries to reduce greenhouse gas emissions. Developed countries agreed to binding emissions cuts, while developing countries were not required to make cuts. The three main mechanisms of the Kyoto Protocol are emissions trading, the Clean Development Mechanism, and Joint Implementation. The document discusses the effects of the protocol on developed (Annex 1) and developing (Non-Annex 1) countries, and presents a case study examining policy options for Annex 1 countries to meet their emissions targets while limiting negative impacts on developing countries.