Browse
Engage
Research
I wrote earlier on my blog a post, Signs of An Inflexion Approaching, that highlights changes in carbon accounting rules for businesses on both sides of the Atlantic.
These can be a tough times for businesses that have been first movers. Rules change, and what seemed like the right decision at the time suddenly looks less so going into the future. A carbon neutral position can become invalidated or seemingly regress by either a company or a government entity, such as the recent example of the US House of Representatives abandoning plans to make their offices carbon neutral.
But that is not how we should be judging. It is the actions of the businesses and governments that stepped into the fray before things were clear that have been the catalysts to crystallize the landscape and help facilitate decisions on rules and frameworks.
The investments of these first mover organizations will not have been wasted. These companies and other organizations will be able to inform policy and rulemaking and will be ahead of their competitors both in adapting quickly, based on knowledge and experience, to the new rules.
And enlightened government will ensure that rule and their timescales for introduction do not penalize first movers. I see this in the timescales for the new EPA rules for Green Power Partners that allow companies to adjust before the rules take effect.
Some businesses will have to sacrifice a little pride and revisit carbon reductions in the light of a new framework -- but this is the worst case.
The ground is going to continue shifting for some time before rules become clear. But businesses should not wait.
Renewables decisions should of course include scenario planning as would any other business decisions, but they should go ahead where they make commercial sense. And government should recognize the valuable contribution of first movers and the damage it would do to other potential actors if the whole market is paralyzed into inaction until all the rules are clear.
Kevin Moss has responsibility for implementation of BT's Corporate Social Responsibility (CSR) strategy for BT in North America and maintains a blog at www.csrperspective.com
Image by bluegum.
The advantage in being first
On the contrary - adopting carbon initiatives early, like investing in renewable energy and calculating your GHG footprint - is the best way to reduce administrative burden.
Companies that jump on the climate change bandwagon early have the advantage. They can devote time, resources, and budget to the problem gradually, instead of all at once when carbon legislation come down the pike.
The new EPA proposed rule to have large emitters report their GHG footprint annually is a perfect example. EPA set the threshold for reporting at 25,000 mt CO2e. But only companies who have already been actively engaged in carbon reporting are able to easily assess whether or not their emissions fall above or below this threshold.
Not to mention that these early movers, such as those companies participating in EPA Climate Leaders, will be able to draw up on past data and experience for the reporting itself. Taking a "wait and see" approach is actually the best way to make this process cost as much and be as onerous as possible.
Sarah Smith
Environmental Affairs Specialist
BeGreen, a division of Green Mountain Energy
http://www.begreennow.com
Renewables calculation
At the rate Obama is going, he could well be a one term president as the economy crashes down around his inept economic policies.
If this be the case, we could see a fairly direct "about face" of many of these carbon taxes and legislations by the next government. They would be deemed too expensive and onerous for U.S. businesses right now.
It would be in company's best interests to take a "wait and see" approach.
Any legislation is likely to create higher taxes and more paperwork, so very few companies would be "chomping at the bit" to face up to those realities.
Very few carbon initiatives would make economic sense unless it helps to increase company market share and profit. I see very little anecdotal evidence of this.