Canadian Andrew Leach blogs on Canada's announcement of its intention to withdraw from the Kyoto Protocol and the enforcement and penalties issue.
Leach is also in the Globe and Mail.
He confirms that there would be no financial penalty if Canada stayed in the Kyoto Protocol for the first commitment period but do not sign and ratify for the second commitment period. By withdrawing, Canada becomes a 'non-participant' not a 'non-compliant but unpenalised' participant of the Kyoto Protocol.
Or as Leach says "the key reason [for withdrawing] is...to avoid an explicit finding of non-compliance – the analog which immediately jumps to mind is a student dropping a course they are likely to fail".