Transcript The Commerce of Climate - Erasmus Research Institute of

The Commerce
of Climate
29 SEPTEMBER 2007
PHOTO BY ROGER BRAITHWAITE AND JAY ZWALLY
Agenda
 Introduction
 Brief overview of the issue (10 mins)
 Panelist presentations (5 mins each)
 Open debate (45 mins)
 Short break
 Break-out Groups (30 mins)
 Debrief at 16.15
The Stern Review ’06: The Economics of Climate
Change
 The scientific evidence is overwhelming: It’s
happening and the global risks are severe
SOURCE HURRICANE KATRINA PICTURE (RIGHT):
HTTP://WWW.ELSEVIER.NL/ARTIMG/200701/KATRINAWORLDPRESS.JPG
The Stern Review ’06: The Economics of Climate
Change
 Climate Change is the greatest and widest-ranging
market failure ever seen
HTTP://WWW.HM-TREASURY.GOV.UK/MEDIA/8AC/F7/EXECUTIVE_SUMMARY.PDF
 Stern calls for cuts in CO2 emissions of between 50-
80%


Kyoto Protocol at 5% average global cuts
EU agreed to 20% cuts by 2020
The Stern Review ’06: The Economics of Climate
Change
 Total cost of Business-As-Usual = 20% reduction in
per capita consumption, now and into the future
 Annual costs of stabilization ≈ 1% of GDP by 2050

Significant, but manageable
 The transition to a low-carbon economy will bring
challenges for competitiveness, but also
opportunities for growth
 There is a high price to delay

If we don’t act within 10 years, it may be too late
Good News/Bad News
 G-8 statement
 US policy shift
 China
 Large Cities Initiative with Clinton
 Breakthrough at the Montreal Protocol
 The Inconvenient Truth tips public opinion (and
wins Oscar)
The International Policy Debate
 Kyoto Protocol country commitments
 Post-Kyoto negotiations
 G-8
 Bush’s Big Emitters Group
 No New Oil campaign
PICTURE SOURCE: WWW.CBC.CA/NEWS/BACKGROUND/KYOTO
Tackling Climate Change
Action vs. Inaction?
Questions
 After reading the Stern Review, how do you see your
company being part of the solution?

Can you meet a 50-80% cut in CO2 emissions vs. 1990 levels?

What climate investments are you making?
 What structural changes do you think are necessary
to meet the climate challenge?
 Does your personal carbon footprint matter?
 How can a business school make a difference?
Break-Out Groups
Additional Reading
 UN’s Climate Secretariat www.unfccc.int
 Intergovernmental Panel on CC www.ipcc.ch
 RSM’s Sustainability and Climate Research
www.erim.eur.nl/scr
 Planet 2025 e-news bulletin www.planet2025news.net/
 Check your carbon footprint www.carbonfootprint.com