If there are delays in setting emission limits, then the market will be dealing in bigger reductions, with greater scarcity and a more compelling reason for trade. Multinationals such as British Petroleum and Royal Dutch Shell are investing millions of dollars in the development of renewable energy products and services. These corporations say their future is to provide energy and mobility services rather than petroleum. They are diversifying to anticipate the markets of the future. On a national scale, the US Clean Air Act had a similar effect.
Laws can effect the profitability of goods and services.
Tobacco provides an example in the area of health. The airlines jumped ahead of the game by banning smoking on airplanes out of concern not only for the health of employees and passengers, but also the possibility of future lawsuits. National tax structures can also drive environmental outcomes. Historically we have not taxed pollution, wasteful use of materials and energy or the use of natural capital generally. Gross domestic product is merely a measure of economic activity.