Which treaty was designed to require nations to buy allowances of 'carbon credits' to decrease CO2 and reduce greenhouse emissions?

• A. Kyoto Protocol
• B. Paris Agreement
• C. Montreal Protocol
• D. Geneva Convention

Answer: (A)

The key idea is using a market-based tool to cut emissions by creating and trading carbon allowances. The Kyoto Protocol was the first treaty to set legally binding emission reduction targets for developed countries and to establish a framework for emissions trading. It introduced carbon credits as tradable units and created mechanisms like the Clean Development Mechanism and Joint Implementation, allowing nations to meet their targets by reducing emissions where it’s cheapest or by funding projects abroad and counting those reductions toward their commitments. The Paris Agreement shifts toward nationally determined pledges without mandatory trading of credits, while the Montreal Protocol focuses on ozone-depleting substances and the Geneva Convention deals with wartime conduct. So the treaty designed to require nations to buy allowances of carbon credits to decrease CO2 and reduce greenhouse emissions is the Kyoto Protocol.