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Purpose - This paper sets out to tackle the issue of climate change from a business perspective. It seeks to discuss why it is important to take climate change considerations into account in business decisions, how this can be done and what further action is required from managers and business scholars.
Design/methodology/approach - The paper describes ways of reducing emissions and adapting to climate change that can be implemented by any business. As an illustration, the proposed climate strategy of a large European utility company, RWE, is provided.
Findings - There are numerous ways to reduce emissions within business operations, along the supply chain and surrounding product usage and disposal. Climate-proofing operations is also becoming increasingly pertinent to businesses.
Research limitations/implications - New ways have to be found yet in order to take emission reductions to a more ambitious level by altering patterns of production and consumption.
Practical implications - The paper discusses how businesses can reduce their carbon footprint and anticipate changes in the physical and political environment related to climate change.
Originality/value - The paper is of value to managers who, today, are expected not only to reduce emissions from operations, but also to gain an awareness of the physical, political and social risks stemming from the impacts of climate change.
The current emissions trading debates in the EU and the USA were examined and the prospects for creating a transatlantic carbon market were analysed. A future US Emissions Trading Scheme (US ETS) may be designed very differently from the EU ETS, raising questions of compatibility. Crucial differences relate to the stringency of targets, the recognition of offsets, and price control mechanisms. These differences flow directly from the different policy and economic perspectives on emissions trading and climate policy in the USA and the EU. The two sides should therefore seek a way forward that reconciles potentially different climate policies. For example, the USA and the EU should consider an effort to harmonize carbon prices, and US legislation could phase out cost-containment mechanisms after some time period. Finally, both US and EU policies should have mechanisms that allow periodic recalibration, which would allow each to adjust to new technology, react to developing-country climate policies, and learn from each other. In the longer term, this would allow both sides to strive for greater policy convergence, either through linked trading systems, harmonized prices, or a transition from harmonized prices to linkage.
Energy efficiency is a national priority for China as rapid energy consumption growth aggravates its greenhouse gas emissions, local air pollution and energy scarcity. In the 1990s, a large number of voluntary agreements emerged in industrialised countries in order to improve industrial energy efficiency. These experiences are now taken into account in China. This article analyses the drivers for voluntary agreements on industrial energy efficiency in China, based on a case study of three enterprises in Nanjing, Jiangsu Province. Furthermore, the article reviews the institutional set-up of energy policy and investigates the pertaining policy culture. From the findings, conclusions are drawn on the role of voluntary agreements within China's larger policy context. We conclude that opposed to avoiding stricter regulation, voluntary agreements in Nanjing are reinterpreted in view of more stringent national provisions on energy efficiency in the 11th Five Year Plan. Hence, agreements have evolved into an implementation tool of national policy at the local level. For industry, another major driver for participation was identified as improving its relations with local authorities. Voluntary agreements showed to have the potential to overcome traditional constraints of implementing top-down policies at the local level in China.
While the number of projects under the Clean Development Mechanism (CDM) is expanding rapidly, there currently are relatively few transport projects in the global CDM portfolio. This article examines existing CDM transport projects and explores whether sectoral approaches to the CDM may provide a better framework for transport than the current project‐based CDM. We ask: Would a sectoral approach to the CDM promote the structural change and integrated policymaking needed to achieve sustainable transport policy, making it hence more desirable than the framework of the current project‐based CDM? We conclude that it is possible to design sectoral transport activities within clear project boundaries that fit into a framework of a programmatic or policy‐based CDM. Although we are able to ascertain that transport policy research yields several modelling tools to address the methodological requirements of the CDM, it becomes apparent that sectoral approaches will accentuate transport projects' problems regarding high complexity and related uncertainties. The CDM may need new rules to manage these risks. Nonetheless, sectoral approaches allow the scaling up of activities to a level that affects long‐term structural change.
The sensitivity of climate phenomena in the low latitudes to enhanced greenhouse conditions is a scientific issue of high relevance to billions of people in the poorest countries of the globe. So far, most studies dealt with individual model results. In the present analysis, we refer to 79 coupled ocean–atmosphere simulations from 12 different climate models under 6 different IPCC scenarios. The basic question is as to what extent various state-of-the-art climate models agree in predicting changes in the main features of El Niño-Southern Oscillation (ENSO) and the monsoon climates in South Asia and West Africa. The individual model runs are compared with observational data in order to judge whether the spatio-temporal characteristics of ENSO are well reproduced. The model experiments can be grouped into multi-model ensembles. Thus, climate change signals in the classical index time series, in the principal components and in the time series of interannual variability can be evaluated against the background of internal variability and model uncertainty.
There are large differences between the individual model predictions until the end of the 21st century, especially in terms of monsoon rainfall and the Southern Oscillation index (SOI). The majority of the models tends to project La Niña-like anomalies in the SOI and an intensification of the summer monsoon precipitation in India and West Africa. However, the response barely exceeds the level of natural variability and the systematic intermodel variations are larger than the impact of different IPCC scenarios. Nonetheless, there is one prominent climate change signal, which stands out from model variations and internal noise: All forced model experiments agree in predicting a substantial warming in the eastern tropical Pacific. This oceanic heating does not necessarily lead to a modification of ENSO towards more frequent El Niño and/or La Niña events. It simply represents a change in the background state of ENSO. Indeed, we did not find convincing multi-model evidence for a modification of the wavelet spectra in terms of ENSO or the monsoons. Some models suggest an intensification of the annual cycle but this signal is fairly model-dependent. Thus, large model uncertainty still exists with respect to the future behaviour of climate in the low latitudes. This has to be taken into account when addressing climate change signals in individual model experiments and ensembles.
The international climate negotiations have seen endless struggles between countries from South and North for almost 17 years, ever since the initiation of negotiations by the International Negotiation Committee (INC) for the United Nations Framework Convention on Climate Change (UNFCCC). The 13th meeting of the Conference of the Parties to the UNFCCC and the 3rd meeting of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (COP 13 / CMP 3) held in Bali in December 2007 (the Bali conference) could mark the beginning of a rapprochement. Parties agreed on initiating a new "Ad-hoc working group on Long-Term Cooperative Action under the Convention" (AWG-LCA) that aims to negotiate a post-2012 agreement with participation of all parties, including the US and developing countries, by the end of 2009 at COP 15 / CMP 5 in Copenhagen. This article examines the outcomes of the Bali conference, focussing on the negotiations regarding post-2012, flexible mechanisms, financial mechanisms, technology transfer and deforestation. Finally, the article concludes that the Bali Conference saw a significant shift in the battle lines, a rearrangement of positions and alliances that might well announce a decisive new era in global climate policy and provides a real chance to agree on an effective and workable post-2012 agreement in Copenhagen.
Japan
(2008)
What is the significance of the 2007 United Nations Climate Change Conference in Bali? The formal outcomes, especially the "Bali Action Plan", are described and commented on, along with the challenges for negotiating a post-2012 agreement in Copenhagen during 2008 and 2009. The article concludes that the outcome of the Bali meeting is insufficient when compared to the nature of the challenge posed by climate change. However, it can nevertheless be considered a success in terms of "Realpolitik" in paving the way for the negotiations ahead, because some real changes have been discerned in the political landscape. The challenges for the road towards Copenhagen are manifold: the sheer volume and complexity of the issues and the far-reaching nature of decisions such as differentiation between non-Annex I countries pose significant challenges in themselves, while the dependency on the electoral process in the USA introduces a high element of risk into the whole process. The emergence of social justice as an issue turns climate policy into an endeavour to improve the world at large - thereby adding to the complexity. And, finally, the biggest challenge is the recognition that the climate problem requires a global solution, that Annex I and non-Annex I countries are mutually dependent on each other and that only cooperation regarding technology in combination with significant financial support will provide the chance to successfully tackle climate change.
In this study, the relevance of psychological variables as predictors of the ecological impact of mobility behavior was investigated in relation to infrastructural and sociodemographic variables. The database consisted of a survey of 1991 inhabitants of three large German cities. In standardized interviews attitudinal factors based on the theory of planned behavior, further mobility-related attitude dimensions, sociodemographic and infrastructural characteristics as well as mobility behavior were measured. Based on the behavior measurement the ecological impact of mobility behavior was individually assessed for all participants of the study. In a regression analysis with ecological impact as dependent variable, sociodemographic and psychological variables were the strongest predictors, whereas infrastructural variables were of minor relevance. This result puts findings of other environmental studies into question which indicate that psychological variables only influence intent-oriented behavior, whereas impact-oriented behavior is mainly determined by sociodemographic and household variables. The design of effective intervention programs to reduce the ecological impact of mobility behavior requires knowledge about the determinants of mobility-related ecological impact, which are primarily the use of private motorized modes and the traveled distances. Separate regression analyses for these two variables provided detailed information about starting points to reduce the ecological impact of mobility behavior.
The Russian natural gas industry is the world's largest producer and transporter of natural gas. This paper aims to characterize the methane emissions from Russian natural gas transmission operations, to explain projects to reduce these emissions, and to characterize the role of emissions reduction within the context of current GHG policy. It draws on the most recent independent measurements at all parts of the Russian long distance transport system made by the Wuppertal Institute in 2003 and combines these results with the findings from the US Natural Gas STAR Program on GHG mitigation options and economics.
With this background the paper concludes that the methane emissions from the Russian natural gas long distance network are approximately 0.6% of the natural gas delivered. Mitigating these emissions can create new revenue streams for the operator in the form of reduced costs, increased gas throughput and sales, and earned carbon credits. Specific emissions sources that have cost-effective mitigation solutions are also opportunities for outside investment for the Joint Implementation Kyoto Protocol flexibility mechanism or other carbon markets.
The United Nations climate change conference in Nairobi came at the end of a year where public awareness of climate change had reached unprecedented heights. Nonetheless, the conference proceeded with its usual diplomatic ritual, apparently unaffected by time pressure. While it did see some progress on important issues for developing countries such as the Adaptation Fund, the Nairobi Work Programme on Impacts, Vulnerability, and Adaptation to Climate Change, and the Clean Development Mechanism (CDM), on questions regarding the future of the regime it proved to be at best a confidence-building session that served to hear further views. More serious work on the future of the regime must therefore be expected of the next Conferences of the Parties.
This article by Wolfgang Sterk, Hermann E. Ott, Rie Watanabe and Bettina Wittneben summarises the results of the conference.
Grave concerns with the Clean Development Mechanism (CDM) have increasingly surfaced in the international climate policy arena. The sectoral approaches described in this paper may be a way to address some of the shortcomings of this Kyoto mechanism. The paper outlines the criticisms that have been raised against the CDM as well as the conflicting interpretations of a sectoral approach and examines in how far it might resolve the mechanism’s perceived shortcomings. Furthermore, it outlines issues that need to be resolved when implementing a sectoral approach: distributing costs and benefits, defining the sector and its baseline, ensuring additionality and tackling procedural issues. A sectoral approach can enable countries to guide their structural development but it also opens up a gap between public and private investment that needs to be addressed before conflicts arise. Sectoral CDM activities may be able to lower transaction costs for projects that otherwise cannot compete in the CDM market and might even pave the way to sectoral greenhouse gas limitation targets in developing countries by establishing the necessary infrastructure for data collection. However, a sectoral CDM cannot be mistaken for a panacea. Some of the mechanism's problems remain, which highlights the need to establish additional instruments to support Southern countries in furthering sustainable development and embarking on a low-emission trajectory.
In the long term, any definition of adequacy consistent with UNFCCC Article 2 will require increased mitigation efforts from almost all countries. Therefore, an expansion of emission limitation commitments will form a central element of any future architecture of the climate regime. This expansion has two elements: deepening of quantitative commitments for Annex B countries and the adoption of commitments for those countries outside of the current limitation regime. This article seeks to provide a more analytical basis for further differentiation among non-Annex I countries. To be both fair and reflective of national circumstances, it is based on the criteria of responsibility, capability and potential to mitigate. Altogether, non-Annex I countries were differentiated in four groups, each including countries with similar national circumstances: newly industrialized countries (NICs), rapidly industrializing countries (RIDCs), ‘other developing countries’, and least developed countries (LDCs). Based on the same criteria that were used for differentiating among non-Annex I countries, a set of decision rules was developed to assign mitigation and financial transfer commitments to each group of countries (including Annex I countries). Applying these decision rules results in (strict) reduction commitments for Annex I countries, but also implies quantifiable mitigation obligations for NICs and RIDCs, assisted by financial transfers from the North. Other developing countries are obliged to take qualitative commitments, but quantifiable mitigation commitments for these countries and the LDC group would be not justifiable. As national circumstances in countries evolve over time, the composition of the groups will change according to agreed triggers.
Combining environmental with employment objectives, ecological tax reform (ETR) envisages a double dividend. While research has mainly focused on the socio-economic and environmental impacts of ETR, there is less literature on the social responses. This paper gives an overview and history of German ETR as well as investigating the understanding of perceptions and attitudes towards ETR of those being "subject to tax". The research is based on qualitative social research methods. As with the other PETRAS papers, interviews were conducted with policy-makers and business leaders and focus groups were formed with lay persons. The results show that responses of policy-makers and business leaders are modest. Although some criticisms about the specific design of the German ETR remain, complaints towards ETR are settled. Attitudes appear influenced by more fundamental convictions such as economic interest or altruistic views. In contrast, ETR appears to politicise common people. Attitudes are influenced by the overall comprehension of the ETR concept, the expected impacts, perceived information deficits, as well as a general distrust in politics. Our data show that the linking of environmental and employment objectives is not understood and not welcomed. In order to increase social acceptance, the paper discusses refocusing ETR on environmental objectives, modestly increasing the share of ETR revenue spent for environmental purposes, removing inconsistencies in the ETR design, and improving information policy.
Holiday travel behavior, individual characteristics of holiday travelers and strategies to change holiday travel behavior are the subjects of this article. From the environmental perspective, the journey to the destinations is the most critical aspect of traveling. Based on a 2003 survey of 1991 German inhabitants, the kilometers traveled and the choice of transportation mode for holiday purposes have been quantified. According to the number of trips and kilometers traveled, four travel groups have been identified. The groups vary according to socio-demographics, psychological factors, number of holiday trips, and travel mode choice. Persons who traveled to more distant destinations also traveled more often and used air travel for more than 60% of their trips. For the other groups, car travel was more important. Correlating the four travel groups with greenhouse gas emissions reveals that the smallest group - the long-haul travelers - was responsible for 80% of the emissions of the whole sample. Income, education, and openness to change were main indicators of individual greenhouse gas emissions. Target group oriented strategies to reduce the environmental impact of holiday mobility are discussed against the background of 84 in-depth interviews conducted with selected representatives of the first survey.
After two weeks of negotiations, climate diplomats completed the implementation of the Protocol, refined some of its instruments for implementation and agreed on processes for moving forward beyond the first Kyoto commitment period. The report by the Wuppertal Institute provides an overview and assessment of the agreements reached in Montreal.
This article presents the findings of a European study on energy efficiency in the public sector, entitled "Public procurement of Energy Saving Technologies in Europe" (PROST), completed in 2003. Energy efficiency in the public sector goes far beyond energy savings and climate protection. Energy efficiency must be seen as a strategy, which deals both with scarce public funds and with profound energy and climate challenges. The gains to be made are substantial. The study assessed the potential for energy and cost savings and the greenhouse gas reductions that are linked to energy efficiency in the European public sector. To the knowledge of the authors, this is the first time such an analysis has been carried out. The study concluded that there are no fundamental legal obstacles that would a priori disable the public sector from procuring energy efficient technologies or applying energy efficiency considerations in its daily building management routines. However, at the level of implementation obstacles can occur. It is therefore of paramount importance that there is sufficient political will and adequate incentive systems at all relevant levels. It appeared to be particularly effective when public procurement is energy-efficiency minded in all its operations and life cycle costing is applied for investments instead of conventional public budgeting procedures. The study demonstrates that consistent and EU-wide application of these principles and instruments can result in rather substantial savings both in terms of energy and in terms of money. With additional annual investments in energy efficiency of 80 million Euro, energy savings in the (EU15) Member States' public sector worth up to 12 billion Euro per year can be achieved. A supplementary analysis was performed for a selection of the new Member States, which indicated that the potential for energy and fiscal savings is substantial in those countries as well.
The first Meeting of the Parties to the Kyoto Protocol (MOP 1) took place from 28 November to 10 December 2005 in Montreal, in conjunction with the eleventh meeting of the Conference of the Parties to the Framework Convention on Climate Change (COP 11). This meeting signifies a successful start into a new era of international climate policy: The Kyoto Protocol, which in the past had been sometimes declared as being dead, has become operational.
The challenges of the meeting were framed along the "Three Is", Implementation, Improvement and Innovation. The first challenge (Implementation) entailed in particular the adoption of the Marrakesh Accords, the agreements reached at COP 7 in Marrakesh that set out the detailed rules for making the Kyoto Protocol operational. The second challenge (Improvement) referred to improving the work of the Framework Convention and the Kyoto Protocol in the near future. The third and most important challenge (Innovation) referred to the further evolution of the regime.
This article by Bettina Wittneben, Wolfgang Sterk, Hermann E. Ott und Bernd Brouns provides an account of the main developments in Montreal along the lines of the "Three Is". The paper concludes with an assessment and outlook on international climate policy.