The growing concern about climate change led governments around the world to agree on forming the United Nations Framework Convention on Climate Change (UNFCCC) during the 1992 Rio summit. This Convention entered into force in March 1994 and by May 1997, the UNFCCC had over 130 signatory countries. The UNFCCC works for the “stabilization of carbon dioxide (CO2) concentrations at a level that would prevent dangerous anthropogenic interference with the climate system”. The Convention requires the cooperation of national administrations in providing a framework of regulations and policies to implement its various provisions. The Kyoto Protocol to the UNFCCC was adopted in December 1997, according to which the developed country parties agree to reduce their Greenhouse Gases (GHGs) emissions by a global average of 5.2 per cent below the 1990 levels by the period 2008–2012. The Protocol came into effect in February 16, 2005 without its ratification by USA and Australia. India is not required to adopt any GHG reduction targets though she has to follow the general commitments under the UNFCCC. It is well known that the USA considers the Kyoto Protocol to be a “totally flawed” and “unsound international treaty”. The Kyoto Protocol created flexible cooperative mechanisms, such as GHG Emissions Trading and Clean Development Mechanism (CDM), allowing member countries to meet their commitments with respect to reduction in emissions. Through CDM, developing countries that did not accept binding emissions reductions at Kyoto can be involved in GHG mitigation.