Named after the city in Japan in which is was originally negotiated, the Kyoto protocol is an international agreement to reduce of carbon dioxide and other greenhouse gases which most scientist blame for increasing global temperature. According to a press release from the United Nations Environment Programme: "The Kyoto Protocol is a legally binding agreement under which industrialized countries will reduce their collective emissions of greenhouse gases by 5.2% compared to the year 1990 (but note that, compared to the emissions levels that would be expected by 2010 without the Protocol, this target represents a 29% cut). The goal is to lower overall emissions from six greenhouse gases - carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, HFCs, and PFCs - calculated as an average over the five-year period of 2008-12. National targets range from 8% reductions for the European Union and some others to 7% for the US, 6% for Japan, 0% for Russia, and permitted increases of 8% for Australia and 10% for Iceland." Many countries have limits that are set above their current production. These "extra amounts" can be purchased by other countries on the open market. So, for instance, Russia currently easily meets its targets, and can sell off its credits for millions of dollars to countries that don't yet meet their targets, Canada for instance. This rewards countries that meet their targets, and provides financial incentives to others to do so as soon as possible.

From Wikipedia: According to the terms of the protocol, it enters into force "on the ninetieth day after the date on which not less than 55 Parties to the Convention, incorporating Parties included in Annex I which accounted in total for at least 55 per cent of the total carbon dioxide emissions for 1990 of the Parties included in Annex I, have deposited their instruments of ratification, acceptance, approval or accession.". Of the two conditions, the "55 parties" clause was reached on May 23, 2002 when Iceland ratified. The ratification by Russia on November 18, 2004 satisfied the "55 percent" clause and brought the treaty into force, effective February 16, 2005.

127 countries have ratified the protocol, including Canada, China and Japan. The two countries opposed to this protocol are the United States and Australia.

The current President, George W. Bush, has indicated that he does not intend to submit the treaty for ratification, not because he does not support the general idea, but because he is not happy with the details of the treaty. For example, he does not support the split between Annex I countries and others. Bush said of the treaty: "The world's second-largest emitter of greenhouse gases is China. Yet, China was entirely exempted from the requirements of the Kyoto Protocol. This is a challenge that requires a 100 percent effort; ours, and the rest of the world's. America's unwillingness to embrace a flawed treaty should not be read by our friends and allies as any abdication of responsibility. To the contrary, my administration is committed to a leadership role on the issue of climate change. Our approach must be consistent with the long-term goal of stabilizing greenhouse gas concentrations in the atmosphere." China has since ratified the Kyoto Protocol, and is expected to become an Annex I country within the next decade.

The prospect of the US staying outside the agreement influenced a number of other countries including Australia, Japan, and Canada to discuss whether they should ratify the agreement, putting themselves at a competitive disadvantage with the USA. While Japan and Canada ultimately decided to ratify the protocol, Australia's current government has said it will not ratify. "Until such time as the major polluters of the world, including the United States and China, are made part of the Kyoto regime, it is next to useless and indeed harmful for a country such as Australia to sign up," Australian Prime Minister John Howard said in Canberra.

On December 17, 2002, Canada ratified the treaty. This was however opposed by groups of businesses, non-governmental climate scientists and energy concerns, using arguments similar to those being used in the US.

However an additional twist is involved. The US is Canada's major trading partner (and vice versa), so with Canadian companies having to pay for emissions, and US companies not, the fear is that Canadian companies will not be able to compete on a fair trading ground. In one example a company can sell natural gas to the US to be burned in an electrical plant to produce electricity. That gas, burned in the US, is not subject to "Kyoto tax". However if that same plant were operated in Canada, the gas would be taxed as it was burned. That would result in the same electricity costing more if produced locally. A September 2004 poll showed that support in Canada for the Kyoto protocol is around 70%.

In Japan, a tireless supporter of the pact, the enactment was being met with a mixture of pride and worry that they are unprepared to meet its emissions reduction targets. Japan planned to celebrate the enactment Wednesday at the convention hall where the accord was negotiated in December 1997. Japan is struggling to find ways to meet its obligations. A report this month by the Ministry of Economy, Trade and Industry showed that 11 of 30 top Japanese industries — steel and power among them — risked failing to reach targets unless they take drastic steps.

In the USA, there is at least one student group Kyoto Now! which aims to use student interest to support pressure towards Kyoto Protocol compliance. As of November 15, 2004, nine Northeastern US states are involved in the Regional Greenhouse Gas Initiative (RGGI), which is a state level emissions capping and trading program. It is believed that the state-level program will apply pressure on the federal government to support Kyoto Protocol. Participating states include Maine, Massachusetts, New Hampshire, Vermont, Rhode Island, Connecticut, New York, New Jersey and Delaware. Observer states and regions include Pennsylvania and Maryland.