An action target is a commitment to reduce greenhouse gas emission levels by an agreed percentage which is applied to an observable baseline: actual emissions during the commitment period. An action target could be adopted at any institutional level: firm, industry, municipal, state or national. At the government level, an action target could, for instance, apply to the government’s own emissions (from government buildings, transportation, etc.), or it could be used to frame a city wide, state-wide, or national commitment.
Because an action target is a tool to achieve reductions, it is compatible with and can be directly integrated into the Kyoto Protocol. Alternatively, action targets could play a role in designing future agreements. Action targets lend themselves to international trading, as reductions can be purchased from or sold to other countries, with the understanding that the definition of ‘reduction’ first must be internationally agreed upon. For instance, the rather limited potential for activities under the Clean Development Mechanism to create reductions might not be ideal for implementing action targets. A broader definition may be desired to enable countries to achieve reductions via, e.g. government policies and programs.