The protocol separated countries into two groups: Annex I contained developed nations, and Non-Annex I referred to developing countries in which Rwanda falls. The protocol placed emission limitations on Annex I countries only. Non-Annex I nations participated by investing in projects designed to lower emissions in their countries.

For these projects, developing countries earned carbon credits, which they could trade or sell to developed countries. Rwanda uses the Clean Development Mechanism and to date a number of carbon market projects have been established. 

Learn more about the carbon market in Rwanda here.

The Kyoto Protocol binds developed countries, and places a heavier burden on them under the principle of “common but differentiated responsibility and respective capabilities,” because it recognises that they are largely responsible for the current high levels of greenhouse gas emissions in the atmosphere.

For developing countries, the Kyoto Protocol sets binding emission reduction targets for 37 industrialised countries and economies in transition and the European Union. Overall, these targets added up to an average 5% emission reduction compared to 1990 levels over the five-year period 2008–2012 (the first commitment period).