Well, there's an easy way to solve it: whack a carbon tax or emissions permit liability on imported goods from non-Kyoto compliant regimes.  That way the externality is removed, and the market will operate at its proper price.

(Unfortunately, the NZ government just gutlessly bowed to pressure from the business and farming sectors and canned its proposed carbon tax.  They still claim they will meet our Kyoto obligations - but with two years to go and no policy, it's difficult to see how).