Holland & Knight
Abstract: The international market for greenhouse gases has experienced tremendous growth over the past 3 years. It has induced substantial reductions in greenhouse gas emissions, engaged developing countries, and lowered the costs of compliance with the Kyoto Protocol for developed countries, all as intended. However, the market has so far failed to produce incentives for the types of game changing technologies likely to lead to substantial reductions of greenhouse gas emissions. The causes of this deficiency suggest important reforms that might reshape and reorient investment in low-carbon investment in the developing world. These reforms are crucial given the importance of energy development in China and India to addressing the challenge of climate change and the carbon market's central role in engaging these countries.