Study of some explanatory factors in the opportunities arising from climate change

The purpose of this research is to analyze different factors behind the disclosure of corporate information on issues related to opportunities arising from climate change worldwide.To achieve that purpose we formulated a dependency model in which the dependent variable corresponds to the creation of a disclosure index on greenhouse gas emissions based on the opportunities arising from climate change and disclosed by companies on their websites. The sample used comprises companies from different countries and activity sectors considered as the most sensitive to greenhouse gas emissions.The results obtained point out that companies with higher environmental performance disclose a larger volume of information on opportunities arising from climate change on their websites, compared to companies with lower environmental performance. Likewise, companies from countries that have ratified the Kyoto Protocol disclose a higher volume of information on greenhouse gas emissions on their websites, compared to companies from countries which have not ratified it.     

Disclosure of climate risk information by the world’s largest companies

The risks related to global climate change are seen as threats to companies, taking into consideration their impact on the return on investment. In order to mitigate climate risk and introduce new opportunities to financiers, companies need to identify, manage, and report climate risks. The purpose of this paper is to investigate the climate risks disclosed by the 100 largest companies in the world, according to the Bloomberg and Price Waterhouse Coopers (PwC 2015) classification, and identify some characteristics of these companies that explain the disclosure level of such information. Preliminary results revealed that of the companies investigated, 14% did not disclose any climate risk information in the Carbon Disclosure Program (CDP) report. Also, from the companies that disclosed information according to the Global Reporting Initiative (GRI), 9.9% did not provide information regarding policies, actions, and strategies for mitigating the risks related to climate change. The results shown by the content analysis suggested that, in general, there is still a low level of disclosure about climate risks by these companies. The final results through econometric instruments and statistical tests indicate that the size of the company or the fact that corporations are from developed countries do not necessarily explain the level of information disclosed. However, the activity sector, the continent, and the efficiency of the Board of Directors are factors that strongly explain the level of climate risk disclosure. We conclude that more effort is needed to encourage an engaging attitude from corporations to develop actions, policies, and strategies to mitigate climate change risks and threats. In addition, the world’s largest companies should make a greater investment in climate risk disclosure.     

Determinant factors of corporate environmental information disclosure: an empirical study of Chinese listed companies

In order to help understand the environmental disclosure mechanism from the corporate perspective, this paper identifies the determinant factors affecting the disclosure level of corporate environmental information on the basis of stakeholder theory, and gives an empirical observation on Chinese listed companies. The corporate environmental information disclosure (EID) level appears to be marginal in current Chinese context. Nearly 40% of the sampled companies opened no substantial environmental data to the public as could be seen from the content analysis of disclosed information. The present condition is that the EID strategy of Chinese listed companies is oriented to fill up the government's environmental concerns. The corporate EID effort is significantly relative to its environmental sensitivity (a proxy of the pressure from the government) and its size. The role of other stakeholders, like shareholders and creditors tested in this study in effecting the EID, is found to be still weak. Another interesting finding is that the sampled companies are selectively opening their environmental information. Companies operating in eastern coastal regions, where the economy has been relatively developed, are more likely to disclose emission-related data. The better the company's economic performance, the more information on environmental investment and pollution control cost is disclosed. More concerns of the firm's stakeholders on environmental issues shall be promoted in order to encourage Chinese enterprises to disclose more environmental information and accordingly become more proactive for improving their environmental performance.     

Policy and technological constraints to implementation of greenhouse gas mitigation options in agriculture

A recent assessment of agricultural greenhouse gas (GHG) emissions has demonstrated significant potential for mitigation, but suggests that the full mitigation will not be realized due to significant barriers to implementation. In this paper, we explore the constraints and barriers to implementation important for GHG mitigation in agriculture. We also examine how climate and non-climate policy in different regions of the world has affected agricultural GHG emissions in the recent past, and how it may affect emissions and mitigation implementation in the future. We examine the links between mitigation and adaptation and drives for sustainable development and the potential for agricultural GHG mitigation in the future.We describe how some countries have initiated climate and non-climate policies believed to have direct effects or synergistic effects on mitigating GHG emissions from agriculture. Global sharing of innovative technologies for efficient use of land resources and agricultural chemicals, to eliminate poverty and malnutrition, will significantly mitigate GHG emissions from agriculture.Previous studies have shown that as less than 30% of the total biophysical potential for agricultural GHG mitigation might be achieved by 2030, due to price- and non-price-related barriers to implementation. The challenge for successful agricultural GHG mitigation will be to remove these barriers by implementing creative policies. Identifying policies that provide benefits for climate, as well as for aspects of economic, social and environmental sustainability, will be critical for ensuring that effective GHG mitigation options are widely implemented in the future.     

Identifying high-yield low-emission pathways for the cereal production in South Asia

Increasing agricultural production to meet the growing demand for food whilst reducing agricultural greenhouse gas (GHG) emissions is the major challenge under the changing climate. To develop long-term policies that address these challenges, strategies are needed to identify high-yield low-emission pathways for particular agricultural production systems. In this paper, we used bio-physical and socio-economic models to analyze the impact of different management practices on crop yield and emissions in two contrasting agricultural production systems of the Indo-Gangetic Plain (IGP) of India. The result revealed the importance of considering both management and socio-economic factors in the development of high-yield low-emission pathways for cereal production systems. Nitrogen use rate and frequency of application, tillage and residue management and manure application significantly affected GHG emissions from the cereal systems. In addition, various socio-economic factors such as gender, level of education, training on climate change adaptation and mitigation and access to information significantly influenced the adoption of technologies contributing to high-yield low-emission pathways. We discussed the policy implications of these findings in the context of food security and climate change.     

Setting greenhouse gas emission targets under baseline uncertainty: the Bush Climate Change Initiative

There is substantial uncertainty regarding baseline greenhouse gas (GHG) emissions forecasts—i.e., how GHG emissions will grow over time in the absence of policy intervention. Thus baseline uncertainty should be a key consideration in setting GHG emissions targets as a mitigation strategy to respond to global climate change. At a minimum, the emissions target must be less than the baseline level to induce changing behavior and new investment. Despite this fundamental policy criterion, baseline considerations have played only a minor role in target setting under international climate policy. Baseline uncertainty applies to both absolute and intensity based emissions targets. It is demonstrated that one advantage of intensity targets is reduced uncertainty in the projected baseline, however there will always be some residual uncertainty in model projections. To illustrate the importance of considering baseline uncertainty in GHG target setting, the Bush Climate Change Initiative is analyzed against its projected baseline as a case study of a modest intensity target. Based on comparison with historical data, the range of projections by major energy-economic models, past discrepancies in the accuracy of model projections and the added complexity of sector-specific drivers for non-CO₂ GHGs, it is shown that the Bush Initiative cannot be guaranteed or even expected to deliver actual reductions against an uncertain baseline. This finding emphasizes the importance of setting a target that accounts for baseline uncertainty to achieve genuine mitigation of GHG emissions.

Major challenges of integrating agriculture into climate change mitigation policy frameworks

Taking the European Union (EU) as a case study, we simulate the application of non-uniform national mitigation targets to achieve a sectoral reduction in agricultural non-carbon dioxide (CO₂) greenhouse gas (GHG) emissions. Scenario results show substantial impacts on EU agricultural production, in particular, the livestock sector. Significant increases in imports and decreases in exports result in rather moderate domestic consumption impacts but induce production increases in non-EU countries that are associated with considerable emission leakage effects. The results underline four major challenges for the general integration of agriculture into national and global climate change mitigation policy frameworks and strategies, as they strengthen requests for (1) a targeted but flexible implementation of mitigation obligations at national and global level and (2) the need for a wider consideration of technological mitigation options. The results also indicate that a globally effective reduction in agricultural emissions requires (3) multilateral commitments for agriculture to limit emission leakage and may have to (4) consider options that tackle the reduction in GHG emissions from the consumption side.     

Full accounting of the greenhouse gas budget in the forestry of China

Forest management to increase carbon (C) sinks and reduce C emissions and forest resource utilization to store C and substitute for fossil fuel have been identified as attractive mitigation strategies. However, the greenhouse gas (GHG) budget of carbon pools and sinks in China are not fully understood, and the forestry net C sink must be determined. The objective of this study was to analyze potential forest management mitigation strategies by evaluating the GHG emissions from forest management and resource utilization and clarify the forestry net C sink, and its driving factors in China via constructing C accounting and net mitigation of forestry methodology. The results indicated that the GHG emissions under forest management and resource utilization were 17.7 Tg Ce/year and offset 8.5% of biomass and products C sink and GHG mitigation from substitution effects from 2000 to 2014, resulting in a net C sink of 189.8 Tg Ce/year. Forest resource utilization contributed the most to the national forestry GHG emissions, whereas the main driving factor underlying regional GHG emissions varied. Afforestation dominated the GHG emissions in the southwest and northwest, whereas resource utilization contributed the most to GHG emissions in the north, northeast, east, and south. Furthermore, decreased wood production, improved product use efficiency, and forests developed for bioenergy represented important mitigation strategies and should be targeted implementation in different regions. Our study provided a forestry C accounting in China and indicated that simulations of these activities could provide novel insights for mitigation strategies and have implications for forest management in other countries.     

Greenhouse gas mitigation in developing countries through technology transfer?: a survey of empirical evidence

While greenhouse gas (GHG) emissions are projected to rise primarily in the developing countries, the potential for developing new GHG mitigation technologies exists primarily in the industrialized countries. It is thus important, not only for predictions about future emission paths but also for climate change mitigation policies, to understand how the international diffusion of such technologies takes place and how it affects the energy infrastructure and GHG emissions in developing countries. This paper provides an overview of the channels through which these technologies diffuse and focuses on the empirical evidence pertaining to the effects these technologies have on GHG emissions in developing countries.

Climate change mitigation policy paradigms—national objectives and alignments

The aim of this paper is to assess how policy goals in relation to the promotion of green growth, energy security, pollution control and greenhouse gas (GHG) emissions reductions have been aligned in policies that have been implemented in selected countries during the last decades as a basis for discussing how a multi objective policy paradigm can contribute to future climate change mitigation. The paper includes country case studies from Brazil, Canada, China, the European Union (EU), India, Japan, Mexico, Nigeria, South Africa, South Korea and the United States covering renewable energy options, industry, transportation, the residential sector and cross-sectoral policies. These countries and regions together contribute more than two thirds of global GHG emissions. The paper finds that policies that are nationally driven and that have multiple objectives, including climate-change mitigation, have been widely applied for decades in both developing countries and industrialised countries. Many of these policies have a long history, and adjustments have taken place based on experience and cost effectiveness concerns. Various energy and climate-change policy goals have worked together in these countries, and in practice a mix of policies reflecting specific priorities and contexts have been pursued. In this way, climate-change mitigation has been aligned with other policy objectives and integrated into broader policy packages, though in many cases specific attention has not been given to the achievement of large GHG emission reductions. Based on these experiences with policy implementation, the paper highlights a number of key coordination and design issues that are pertinent to the successful joint implementation of several energy and climate-change policy goals.     

Multiple-pollutant cost-effectiveness of greenhouse gas mitigation measures in the UK agriculture

This paper develops multiple-pollutant marginal abatement cost curve analysis to identify an optimal set of greenhouse gas (GHG) mitigation measures considering the trade-offs and synergies with other environmental pollutants. The analysis is applied to UK agriculture, a sector expected to make a contribution to the national GHG mitigation effort. Previous analyses using marginal abatement cost curves (MACCs) have determined the sector's GHG abatement potential based on the cost-effectiveness of a variety of technically feasible mitigation measures. Most of these measures have external effects on other pollution loads arising from agricultural activities. Here the monetary values of four of the most important impacts to water and air (specifically ammonia, nitrate, phosphorous and sediment) are included in the cost-effectiveness analysis. The resulting multiple-pollutant marginal abatement cost curve (MP MACC) informs the design of sustainable climate change policies by showing how the MP MACC for the UK agriculture can differ from the GHG MACC. The analysis also highlights research gaps, and suggests a need to understand the wider environmental effects of GHG mitigation options and to reduce the uncertainty in pollutant damage cost estimates.     

A policy review of synergies and trade-offs in South African climate change mitigation and air pollution control strategies

Climate change mitigation and air quality management are mostly addressed separately in South African legal acts and policies. This approach is not always coherent, especially in the context of other serious issues South Africa is facing, such as poverty alleviation. Policies implemented to mitigate climate change might increase negative health affects due to unanticipated outcomes (e.g. increased local air pollution), and these indirect consequences must therefore be taken into account when devising mitigation strategies. However, greenhouse gas mitigation policies can also have co-benefits and positive impacts on local air pollution. An evidence-based approach that takes into account greenhouse gas emissions, ambient air pollutants, economic factors (affordability, cost optimisation), social factors (poverty alleviations, public health benefits), and political acceptability is needed tackle these challenges. A proposal is made that use of an integrated climate/air pollution techno-economic optimising model, such as the Greenhouse Gas and Air Pollution Synergies (GAINS) model, may provide a rational decision support tool to guide policy makers into effective strategies for combined Climate Change and Air Quality mitigation measures.     

The analysis of greenhouse gas emissions/reductions in waste sector in Vietnam

The global waste sector produces, on average, 2–5 % of global anthropogenic greenhouse gas (GHG) emissions. The amount of GHG emissions has grown steadily and is predicted to increase considerable in the forthcoming decades because of the increases in population and gross domestic product (GDP). However, the GHG mitigation opportunities for the sector are still fully not exploited, in particularly in developing countries. A series of initiatives were highly successful and showed that large reductions in emissions are possible. This study aims to propose a holistic quantification model, which can be used for estimation of waste generation and evaluation of the potential reduction of GHG emissions in waste sector for developing countries with a particular application to Vietnam. The two scenarios set for the study were business as usual (BaU) which waste management is assumed to follow past and current trends and CounterMeasure (CM) which alternative waste treatment and management are assessed. Total emissions in the BaU scenario are projected to increase from 29.47 MtCO₂eq in 2010 to 85.60 MtCO₂eq by 2030 and 176.32 MtCO₂eq by 2050. The highest emissions are due to methane (CH₄) released by disposal sites, accounting for about 60 % of the GHG emissions from waste in Vietnam in 2030. This emission is projected to increase significantly (67 % in 2050), unless more of the methane is captured and used for energy generation. The CM scenario gives emission reductions from 25.7 % (2020), 40.5 % (2030) to 56.6 % (2050) compared to the BaU scenario. The highest GHG reduction is achieved through recycling, followed by methane recovery to optimize the co-benefit for climate change mitigation.     

What is the potential and demonstrated role of non-life insurers in fulfilling climate commitments? A case study of Nordic insurers

Collective actions of stakeholders are required for fulfilling the climate commitments of the Kyoto protocol. The insurance sector's global influence and societal impact is fairly well documented. The sector influences societies based on its interaction with stakeholders, on its products, business and political stance. As such, it is a critical actor in facilitating key climate change actions of mitigation and adaptation, and has already been recognized as a leading sector in terms of climate adaptation. The aim of this paper is to explore the role of non-life insurers in fulfilling the climate commitments of the Kyoto Protocol. This paper is based on a case study on Nordic non-life insurance companies. The study documents that Nordic insurers are responding to climate-related threats and opportunities in a strategic manner by reducing their own impacts, through their core activities, and by influencing others to act. Although Nordic insurers do not classify their actions into mitigation and adaptation, but classify them according to their core activities, they demonstrate through actions their role as potential allies for nations in fulfilling the Kyoto protocol climate commitments. The study also reveals that the commercial reality of the industry is not the same as the expected contribution to climate commitments, for instance as specified in international conventions and treaties and in the Intergovernmental Panel on Climate Change (IPCC) and industry reports.     

The Monitoring,Evaluation, Reporting and Verification of Climate Change Projects

Because of concerns with the growing threat of global climate change from increasing emissions of greenhouse gases, the United States and other countries are implementing, by themselves or in cooperation with one or more other nations, climate change projects. These projects will reduce greenhouse gas (GHG) emissions or sequester carbon, and will also result in non-GHG benefits (i.e., environmental, economic, and social benefits). Monitoring, evaluating, reporting, and verifying (MERV) guidelines are needed for these projects to accurately determine their net GHG, and other, benefits. Implementation of MERV guidelines is also intended to: (1) increase the reliability of data for estimating GHG benefits; (2) provide real-time data so that mid-course corrections can be made; (3) introduce consistency and transparency across project types and reporters; and (4) enhance the credibility of the projects with stakeholders. In this paper, we review the issues involved in MERV activities. We identify several topics that future protocols and guidelines need to address, such as: (1) establishing a credible baseline; (2) accounting for impacts outside project boundaries through leakage; (3) net GHG reductions and other benefits; (4) precision of measurement; (5) MERV frequency and the persistence (sustainability) of savings, emissions reduction, and carbon sequestration; (6) reporting by multiple project participants; (7) verification of GHG reduction credits; (8) uncertainty and risk; (9) institutional capacity in conducting MERV; and (10) the cost of MERV.     

An assessment of greenhouse gas emissions and material flows caused by the Finnish economy using the ENVIMAT model

An environmentally extended input-output (EE-IO) analysis - environmental impacts of material flows caused by the Finnish economy - was carried out in order to improve data on production and consumption in Finland. The study resulted in the ENVIMAT model, which can be used to analyze the relationship between material flows, environmental impacts and the economy. The model is based on monetary and physical input-output tables and an environmental life-cycle impact assessment. This article summarizes the main methodological aspects and findings regarding the material flows and climate impacts caused by the Finnish economy in 2002 and 2005. The Finnish model has relatively detailed input data with 150 industries and 918 products and the data on imports was assessed according to a mixed approach with the help of life-cycle inventory data. The results of the model showed that the Finnish economy uses imported material resources as much as domestic resources. Life-cycle greenhouse gas (GHG) emissions caused by imports were equivalent to 70-80% of domestic emissions. The GHG emissions embodied in imports (emissions abroad) and exports (emissions within Finland) were of the same magnitude. The analysis showed that the service sector accounted for 44% of GHG emissions caused by the domestic final use of products. Analysis of the results also showed that the indicator of total material requirement (TMR) should not be used for environmental impact comparisons of products and services. In the future, the aim is to use the ENVIMAT model for assessing temporal changes in the economy; for monitoring sustainable development; for planning climate change mitigation; and for identifying important factors in the economy and assessing their impacts.     

On integration of policies for climate and global change

Currently envisaged mitigation of greenhouse gases (GHG) emissions will be insufficient to appreciably limit climate change and its impacts. Adaptation holds the promise of ameliorating the impacts on a small subset of systems being affected. There is no question that both will be needed. However, climate change is only part of a broader multi-stress setting of global through to local changes. Privileging climate related policies over other concerns leads to tragic outcomes. Climate policies need to be designed for and integrated into this broader and challenging context. This paper focuses on placing climate change within the broader context of global change and the importance of aligning climate policy objectives with the myriad other policies that still need to be implemented if our primary goal is improving human welfare rather than limiting our focus to climate change and its impacts.     

Mitigation of greenhouse gas emissions in European conventional and organic dairy farming

Dairy farming is the largest agricultural source of the greenhouse gases methane (CH₄) and nitrous oxide (N₂O) in Europe. A whole-farm modeling approach was used to investigate promising mitigation measures. The effects of potential mitigation measures were modeled to obtain estimates of net greenhouse gas (GHG) emissions from representative dairy model farms in five European regions. The potential to reduce farm GHG emissions was calculated per kg milk to compare organic and conventional production systems and to investigate region and system specific differences. An optimized lifetime efficiency of dairy cows reduced GHG emissions by up to 13% compared to baseline model farms. The evaluation of frequent removal of manure from animal housing into outside covered storage reduced farm GHG emissions by up to 7.1%. Scraping of fouled surfaces per se was not an effective option since the reduction in GHG emissions from animal housing was more than out-weighed by increased emissions from the storage and after field application. Manure application by trail hose and injection, respectively, was found to reduce farm GHG emissions on average by 0.7 and 3.2% compared to broadcasting. The calculated model scenarios for anaerobic digestion demonstrated that biogas production could be a very efficient and cost-effective option to reduce GHG emissions. The efficiency of this mitigation measure depends on the amount and quality of organic matter used for co-digestion, and how much of the thermal energy produced is exploited. A reduction of GHG emissions by up to 96% was observed when all thermal energy produced was used to substitute fossil fuels. Potential measures and strategies were scaled up to the level of European regions to estimate their overall mitigation potential. The mitigation potential of different strategies based on a combination of measures ranged from −25 up to −105% compared to baseline model farms. A full implementation of the most effective strategy could result in a total GHG emission reduction of about 50 Mt of carbon dioxide (CO₂) equivalents per year for conventional dairy farms of EU(15) comparable to the defined model farms.     

Adoption of the low carbon society policy in locally-governed urban areas: experience from Thai municipalities

Low Carbon Society (LCS) has emerged as a holistic approach to reduce carbon (C) emissions that result from human activities. Although there has been successful implementation of the LCS approach in some cities of developed countries, it is more difficult in developing countries like Thailand. The objectives of this paper are to present drivers and barriers affecting the abilities of three regional cities of Thailand to combine LCS activities with their strategies. Lessons learned from this study will allow for sharing these experiences with municipalities in other developing countries. This research was based on interviews of key informants representing state agencies and local public service associations. It was found that no particular driver significantly influenced local government agencies to implement LCS activities. Conversely, there were financial and managerial barriers to implementing (C) reduction activities. This paper identifies the need for more specific and tailor-made assistance to allow urban municipalities to shift towards LCS activities by considering their individual strengths and weaknesses. Moreover, stakeholders’ understanding of the advantages of implementing LCS activities within locally governed areas was found to be critical for success. The paper concludes that climate change mitigation activities not only reduce greenhouse gas (GHG) emissions but also produce tangible benefits such as improvement the quality of life of people. Such an approach can motivate stakeholders to pursue LCS as a shared goal.