Recent Climate Deal Business Effect

What Does The Recent Climate Change Agreement Mean For Big Businesses?

Dec 18

In the wake of recent terrorist attacks, France and world leaders have shown perseverance and tenacity in the face of tragedy by launching a historic climate change agreement that can possibly end the age of incredulous fossil fuel usage. More than 150 world leaders met in France in a United Nations climate conference to discuss tangible ways that climate change can be prevented. After more than 2 weeks of negotiations between almost 200 countries, a deal has been transcribed that has the potential to save the world from the dangers of climate change. Climate Change Conference

Elements Of The Climate Change Agreement

There were 3 key elements that the climate change agreement underlines:

A legally binding treaty that will require more than 187 countries to reduce carbon fuel emissions starting in 2020.

The Conference of Parties agreed to a number of decisions that will immediately affect the propensity of climate action. Tangible implementation of the Paris agreement will take hold immediately.

The Paris Action Agenda includes a large number of figureheads that will commit for additional action to reduce emissions and increase environmental activism in several regions, countries, cities, and companies.

These 3 key elements will put the agreement into action and limit average temperature rises to well below 2 degrees Celsius above pre-industrial levels and to exert efforts to limit temperature rises below 1.5 degrees Celsius above pre-industrial levels. Climate change and how it affects the world is a conversation that tends to be segmented – this Paris agreement is a significant victory for the world at large, as stakeholders, leaders, presidents, and ministers agreed to a unified, common goal to actively manage and prevent climate change.

Climate change has already had observable effects on the world’s environment. Glaciers have shrunk, ice caps have Climate-cold-glacier-iceberg

disappeared, rivers are breaking banks, and animal ranges have shifted. This climate change agreement has come at a pivotal time for the Association of Small Island States, as it noted that their countries would disappear altogether if rapid action isn’t taken.

What Does the Climate Change Agreement Mean for Businesses

The 31-page treaty calls for ambitious changes for big businesses. The attitude of many businesses – including those who are known to actively contribute to pollution and to a larger extent, climate change – will have to shift immediately to reduce greenhouse gas emissions. Changes to certain elements of the treaty are possible for the next 5 years, with a large part of its program being enacted in 2020. Capitalism has been one of the main forces that has contributed to the destruction of the environment. Due to a number of incentives and tax breaks, the oil, gas, and coal industry will have to be particularly aware of their bottom lines with this new climate change agreement.

Many companies are already contributed to the change. Goldman Sachs, Walmart, and Starbucks are a few of a number of corporations that have announced strict deadlines in which they plan to run completely by renewable energy. Apple has committed $848 million to renewable energy sources in the form of solar farms to power its headquarters.

However, many corporations must stay committed to the ideals before the treaty is finalized. There is a 5-year window – an excruciatingly small window of time – that can force businesses to essentially choose sides. Either they are for the mandates underlined by the treaty, or they lobby to keep things the same. The corrosive nature of huge corporations tends to influence laws that favor their businesses. The climate change policy needs to insulate legislation and policy making from the influence of these big polluters for it to survive the next 5 years and beyond.