[55 min 38 sec] Government climate change policies in the U.S. and around the world are opening new business opportunities for green energy entrepreneurs. In this rapidly-changing and highly-political business climate, however, pitfalls are as abundant as opportunities. Addressing the 2010 All-Alumni Conference, Professor Severin Borenstein reviews the state of climate change policies and where they may be headed. He also offers three guiding principles for evaluating new ventures that are attempting to address GHG emissions: understanding the fundamentals of energy markets, recognizing the potential impacts of markets for GHG reduction, and applying the economics of innovation to this industry.