The best hope for involving developing countries in measures to mitigate climate change is to make investment and technologies available to them. Developing countries' ability to replace outdated industrial infrastructures will be crucial to achieving meaningful global results. Predictability of government process is another business requirement. Investment cycles in many areas, like the provision of new power generation plants, are over several decades. Car fleets are not replaced overnight, but over 10 years or more.
New technology is almost invariably more energy efficient than the technology it replaces.
Government measures to implement the Kyoto agreement must take account of such realities. Improved energy performance is not something that can be turned on like a light switch. Much of the developing world is entering a phase of rapid economic expansion, in particular India and China. To make the disciplines of today's agreement less burdensome to national economies, the promises of emissions trading and joint implementation must be developed in the fourth Conference of the Parties. Competition on open markets will stimulate industrial activities that are part of the solution to climate change.