Participants in the Kyoto protocol are failing to cut their greenhouse gas output fast enough, but could still hit their targets if they invest in emissions reduction projects in poorer countries, the United Nations said yesterday.

Only a handful of countries, including the UK, are likely to hit their targets to reduce greenhouse gases under the treaty without investing in projects to cut emissions in developing countries. By putting money into projects such as renewable energy generation and energy efficiency, through a UN scheme known as the "clean development mechanism", rich countries receive "credits" equal to the amount of emissions that have been avoided, which they can count against their Kyoto treaty targets.