The United Nation’s Kyoto Protocol is an international agreement tied to the Framework Convention on Climate Change. It sets binding targets on greenhouse gas emissions and allow trading of carbon credits.

Countries, especially developing countries like North Korea has the right to build clean energy projects and apply for Certified Emission Reductions (CER), commonly known as carbon credits. CERs can be sold to any country or company that needs credit to offset their greenhouse gas emissions.

A night time earth photo of North and South Korea demonstrate the lack of available electricity in North Korea. North Korea is concentrating on developing hydroelectric power to feed the power grid in the country. North Korea is building seven hydroelectric power plants. They are considered to be the cleanest form of power generation making it eligible for earning tradable carbon credits. North Korea’s seven projects could generate 241,000 CERs a year that is worth over $1.3 million.

The U.S. embargo on trade with North Korea may limit the number of bidders for CERs. However, the North Korea has found a partner in neighboring China who is expanding its industrial mighty inside the country as well as other parts of the world that needs carbon credits.