2024 Bilateral Offsets: Is The First Paris Agreement Carbon Credit Trading Meaningful?

Carbon credit trading includes limiting emissions, carbon taxes, and trading schemes [1]. Paris Agreement's Article 6 enables voluntary cooperation for emission reduction targets [5][6]. Swiss-Thailand carbon transaction faces greenwashing critiques and oversight concerns [7][8][9].

Navigating The Global Landscape Of Climate-Related Accounting Standards: A Look At The Three Current Proposals

Climate-related accounting manages financial risks from climate change in business strategy. The SEC (United States), ESRS (European Union) and IFRS (International) have proposed global standards on how to measure and report these risks. Challenges include disclosing scope 3 emissions, with ongoing revisions reflecting feedback from companies and investors. by Yara van Ingen What is climate-related...

Calculating The Risk Of Renewable Energy Investment

The diversity of investors in renewable energy has increased, opening up the pre-existing range of investment opportunities in renewables to greater scrutiny of risk and return. Renewable energy is not an asset class in itself but is a sub-category within several asset classes. Key risks which may need to be computed into the APT model are: price interaction with fossil fuel technologies, complexity of storing renewable-derived commodities, unknown future risks of renewable technologies, the capital-intensive nature of renewable “real estate”, the differing levels of commercial readiness of renewable technologies, regulatory volatility in the jurisdictions in which renewable energy projects are based.

Categories Business & Finance

Is UBI a Sustainable and Green Policy?

Universal Basic Income (UBI) has shifted from a radical agenda to a relevant policy proposal, especially since the pandemic · UBI could have positive environmental impacts, such as reducing status-based consumption and facilitating more sustainable food practices · UBI must be introduced in a way that complements other policy shifts towards environmental protection and social justice

What is ESG and Why is it Becoming Increasingly Important for Companies?

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.

Categories Business & Finance

How does European Carbon Trading Work?

‘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.