If the ownership of negative externalities is assigned, parties can negotiate to reach the best deal. Negotiation is often more efficient than relying on the justice system due to costs and time constraints. Coase Theorem is hardly applied in reality, as one party will often be stronger than the other.
In the past few years, there has been a strong increase in ESG reporting requirements around the world. ESG stands for Environmental, Social, and Governance. They are a set of standards for a company's operations that have become a popular way to indicate a firm’s sustainability performance. There are various issues reported by companies under each of the three pillars, comprising a variety of metrics. The environmental criterion considers how companies manage their environmental impact and use resources. Some of the factors include greenhouse gas emissions, water use, land-use, biodiversity, pollution management, and climate change adaptation. Social criteria focus on how the company fosters its people and engages with the wider society. Examples of social criteria include workforce diversity and inclusion, community engagement, customer satisfaction, and human rights. Governance considers the company’s internal system of practices and policies. Factors include business ethics and code of conduct, risk governance, supply chain management, and tax strategy.
‘Carbon trading’, ‘emissions trading’ or ‘carbon markets’ refer to an approach to reducing greenhouse gas emissions, which turns the right to emit greenhouse gases into a commodity with economic value. This approach is called a ‘cap and trade system’, in which a ‘cap’ or upper limit on greenhouse gas emissions is chosen, and then an accordant number of permits is distributed among emitters (any companies in the industries targeted by a system). Emitters can only emit the amount of CO2eq (CO2 or equivalent) specified by the number of permits they have, else they receive a financial penalty. The cap is designed to limit emissions, whilst the ‘trade’ part of the mechanism is implemented for economic reasons.
The Taiwan Youth Climate Coalition was inspired by Greta Thunberg’s school strike for climate, but takes a different approach to climate advocacy The coalition focusses on bringing climate education into Taiwanese classrooms, rather than promoting strikes outside of school In this article, Yan-Ning Kuo, a member of the coalition, discusses their aims and some of the challenges they face
Published in 1962, Rachel Carson’s Silent Spring is credited as being one of the first books that took the chemical industry head-on, critiquing the environmental orthodoxy of its time. Its poetic use of language sought to properly engage the general public in environmentalism for the first time. For this, Silent Spring received raucous applause from environmentalists and has since never been out of print . But what made its content so compelling? And, as we reflect on the six decades that have passed since its publication, what impact has Silent Spring had on how we think about conservation today? Over the next 2 articles, we will begin to answer these questions. However, to properly understand Silent Spring, we first need to understand the period in which it emerged.
The United Nations Environment Programme (UNEP) publishes two annual flagship reports assessing the global advance in two of the main topics of the Paris Agreement: Mitigation and Adaptation. Both reports are coordinated by UNEP DTU Partnership with its office in Denmark, a partnership between the United Nations Environmental Programme (UNEP) and the Technical University of Denmark (DTU). Read on for an overview of the Adaptation and the Emissions Gap Reports.
China’s novel ETS illustrates a positive development in the remit of carbon markets, aimed at achieving the country’s commitment to achieving net zero carbon emissions by 2060. The scope for successfully implementing an ETS remains significant, covering 15% of global CO2 emissions.
According to the Intergovernmental Panel on Climate Change (IPCC), the number of people displaced by natural disasters and the effects of climate change will grow exponentially over the next few decades. This second article of a two-part series presents some of the key recommendations from the 2015 Agenda for the Protection of Cross-Border Displaced Persons in the Context of Disasters and Climate Change (Protection Agenda).
There were many disagreements about EU climate policies in the ‘90s but two programmes were created that were instrumental to today's climate policies. SAVE was created to promote energy efficiency through streamlining standards and making information readily available to consumers. ALTENER was launched to develop a better understanding around renewable energy sources and bridge the gap between research and their practical application.
According to the Intergovernmental Panel on Climate Change (IPCC), the number of people displaced by natural disasters and the effects of climate change will grow exponentially over the next few decades. This first article of a two-part series introduces some of the challenges stemming from cross-border disaster displacement, and examines the context which led to the launch of the Platform on Disaster Displacement and the 2015 Protection Agenda.