Outlook and Regulation of the Russian Market for Project-Based Transactions Under the Kyoto Protocol

Project-based transactions are a market mechanism for attracting foreign investments in order to abate greenhouse gas emissions and increase the energy efficiency of the country's enterprises. The article classifies and analyzes the advantages and drawbacks of project-based transactions from a host country's perspective. Russia currently lags behind the leaders of the project-based transactions market. A state carbon fund is proposed through which to channel project-based transactions. The incorporation of an option mechanism into the contract structure of a transaction is proposed as a form of market regulation.