An important directive in the agreement calls for a reduction in global greenhouse gas emissions in order to limit the increase in global temperature to 2 degrees Celsius above pre-industrial levels during this century, while taking steps to limit the increase to 1.5 degrees. The Paris Agreement also offers industrialized countries the opportunity to assist developing countries in their efforts to adapt to climate control and creates a framework for transparent monitoring and reporting of countries` climate goals. It has enabled countries to achieve their targets through three market-based mechanisms: the International Emissions Trading Scheme, the Clean Development Mechanism (CDM) and Joint Implementation. Developed countries should pay developing countries for the reduced emissions. Under such a system, called Targets-with-Trading, developing countries would commit to binding greenhouse gas emission targets and then participate in an international system where emission permits would be bought and sold. One country or company would be able to pay for an authorization to exceed its target, while other countries would receive a payment for emissions under their targets. If developing countries adhere to a system such as Targets-with-Trading, it would not only have environmental and economic benefits for the rest of the world; It would also have considerable environmental and economic benefits for developing countries themselves. Consider a plan where developing countries only commit to following their corporate issuance trajectories and joining the trading system during the 2008-2012 fiscal period. There are many challenges to efforts to implement the Kyoto Protocol negotiated in November 1997 and other measures needed to reduce global greenhouse gas emissions in order to address global climate change. Probably the most difficult gap to bridge is between the United States and developing countries in terms of the need for the latter to participate in any global plan to combat climate change. My proposal would be to index the targets for developing countries. The international agreement would resemble a treaty in which the digital emission target would depend in a defined way on future variables whose values are still undetermined.

(Cost-of-living adjustment agreements in an employment contract are an example of this. It sets certain wage increases for each increase in the consumer price index, thereby reducing uncertainty about real wages.) Future economic growth rates are probably the greatest source of uncertainty. .