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This paper analyzed, for the Brazilian case, the Clean Development Mechanism (CDM). The concept of negative externality and market failure was used to understand the need for environmental policies capable of favoring the sustainable development of countries. The results show the importance of scale for the registration of projects. The energy sector, for example, has more small-scale projects that were created to simplify procedures and lower costs. It was concluded, in general, that the CDM has become an international historical landmark, as it is an innovative tool in contributing to the mitigation of climate change. However, despite its importance being recognized globally, it was observed that the mechanism has weakened over time and there are uncertainties regarding the validity of the Kyoto Protocol. [ABSTRACT FROM AUTHOR]

This paper analyses the participation of firms without GHG emission liabilities as technology providers in CDM and JI projects, the flexibility mechanisms of the Kyoto Protocol. It argues that the motivations for those firms to engaging in CDM and ii projects is based on market stimuli beyond those related to the emission market itself. Instead, their motivations are largely associated with search for new markets where their technological resources and expertise can be exploited. The analysis is based on three firms from the Dutch waste management industry. These cases suggest that the Kyotos mechanisms compensate to some extent the weakness of the underdeveloped waste management sector in developing and transition economies. [ABSTRACT FROM AUTHOR]