Kyoto Protocol
Because growing vegetation absorbs carbon dioxide, the Kyoto Protocol allows Annex I countries with large areas of growing forests to issue Removal Units to recognise the sequestration of carbon. The additional units make it easier for them to achieve their target emission levels.
Some countries seek to trade emission rights in carbon emission markets, purchasing the unused carbon emission allowances of other countries. If overall limits on greenhouse gas emission are put into place, cap and trade market mechanisms are purported to find cost-effective ways to reduce emissions. There is as yet no carbon audit regime for all such markets globally, and none is specified in the Kyoto Protocol. National carbon emissions are self-declared.
In the Clean Development Mechanism, only afforestation and reforestation are eligible to produce certified emission reductions (CERs) in the first commitment period of the Kyoto Protocol (2008–2012). Forest conservation activities or activities avoiding deforestation, which would result in emission reduction through the conservation of existing carbon stocks, are not eligible at this time. Also, agricultural carbon sequestration is not possible yet.
Read more about this topic: Carbon Sink