The TETRIS project aimed to explore the economic and industrial impacts as well as the prospects for achieving technology transfer associated with the implementation of the Kyoto flexible mechanisms. Comprehensive risk indicators measuring the risks of investing in climate change mitigation in foreign countries were developed. These indicators have been incorporated into an economic model of international emissions trading. Using quantitative methods and actual market experience from early transactions involving a broad range of technologies the technology transfer and cost savings that can be realised were assessed through the Clean Development Mechanism (CDM) and Joint Implementation (JI). Another goal of our project was to examine as to what extent GHG emissions trading schemes outside the European Union are compatible with each other and the proposed European emissions trading scheme. Our results provided valuable insights into technology transfer and risk management in carbon markets for policy makers and the business community (Project home page: www.zew.de/en/kooperationen/UMW/TETRIS/).