Compliance Procedures
The compliance body regulating the Kyoto Protocol was established in March 2006, and comprises two branches. The Enforcement branch focuses on assessing compliance with the Protocol's greenhouse gas inventory reporting guidelines and legally-binding emission targets, while the Facilitative branch is tasked with advisory and regulatory responsibilities to ensure that countries are well-prepared to meet Protocol commitments.
In the case of emissions targets, Annex 1 countries are given a grace period of 100 days to make up any shortfall identified after the expert review of their final annual emissions inventory. This may be made up through emissions trading, however, if not, this deficit is carried onto the second commitment period, with an added 30% shortfall penalty. The errant country will also be barred from selling credits, and is required to submit a compliance plan detailing how the shortfalls will be addressed.