Under the United Nations Framework Convention on Climate Change, developed countries—or Annex I countries—are required to maintain national greenhouse gas inventories, and to report annual emissions of greenhouse gases.

Developed nations are also required to cut overall emissions of greenhouse gases by an average of 5.2 per cent below 1990 levels over the first commitment period 2008–2012.

Annex I countries—comprising 40 countries and EU member states—have an obligation:

Annex II countries—23 countries including Australia plus the 27 EU member states—are those industrialised nations that have agreed to pay for some of the costs developing countries face in adapting to climate change. This may include the transfer of clean technologies and resources, as well as providing economic incentives to the developing countries adapting to climate change, and other measures.

Developing countries are encouraged under the Convention to maintain national inventories of greenhouse gas emissions. These countries may volunteer to become Annex I countries when they have achieved significant levels of industrial development. Developing countries under the Convention do not have legally binding emissions targets to compensate for their economic development vis-à-vis developed states.