the kyoto protocol established a joint implementation jl regime for trade among states that had emissions caps and a clean development mechanism cdm to allow states with emissions caps to offset these by purchasing emissions reductions from noncapped states jl and cdm led to a large volume of europedominated and projectbased emissions trading with the cdm credit supply largely captured by china to the exclusion of least developed countries ldcs unable to compete with chinas efficient lowcost project pipeline such domestic policies may include national or subnational emissions trading programmes