The environmental agreement may lead to large losses for the oil producers. The Kyoto mechanisms are very important to Norway

The article presents an economic model study of the implications of an climatic agreement. Two main scenarios are presented: 1) The Kyoto protocol is extended to 2020. 2) All counties ratify a climatic agreement. The conclusions are that the Kyoto protocol may have great effects on the oil and gas markets and large economic consequences for Norway. It is therefore mandatory to extensively use the Kyoto mechanisms such as trade with quotas, common implementation and the green development mechanism