Global Sustainability:The Case for Collaboration

Environmental Issues

Environmental Issues 2

Climate Change : A Global Responsibility

• Kyoto Protocol– Protocol to the United Nations Framework Convention on Climate Change

(UNFCCC or FCCC), aimed at combating global warming.– Participation by 160 countries– Conference in 1997– Solution to Greenhouse effect – Climate Change– Earth’s increasing temperature – Global warming– Goal to reduce gas emission – greenhouse effect – Obligation to change – accepting reality– New chapter for scientific community

Environmental Issues 3

The Greenhouse Effect

• Greenhouse Effect – Beneficial• The role of atmosphere – maintaining earth temperature• One % gases in atmosphere responsible for greenhouse effect• Greenhouse gases (GHG) – CO2, H2O, CH4, O3 and N2O• Intensification of GHG – due to human economic activities• CO2 – Second important gas contributing to Greenhouse Effect, is increasing

due to natural as well as human activities• Consumption of fossil fuel since Industrial revolution is causing

intensification of GHG.• CO2 is responsible for 60% of intensification of GHG and will remain in

atmosphere for next 100 years• Methane (CH4) is responsible for 20% of intensification of CHG, but only has

12 years life cycle in atmosphere• Other gases contributes to 20% of intensification of CGH with much shorter

life cycles

Environmental Issues 4

Effects of Global Warming

• Raising sea levels• Melting glaciers and polar caps• Loss of bio-diversity• Increase in incidence of diseases• Changes in rainfall levels• Extreme weather phenomena• Deforestation and loss of agriculture areas• Problems related to fresh water provisions

These effects will have impact on economy:– Loss of life– Lowering production capability– Unemployment– Southern Hemisphere more effected than Northern Hemisphere

Environmental Issues 5

Mitigating Effects of Global Warming

• Two Actions– Reducing emission of GHG gases– Eliminate gases that are already emitted

• Carbon Intensity of Energy sector need to be contained as a first step– Changing mix of energy resources to reduce carbon intensity– Increasing use of non-fossil fuel energy sources like hydro-electric, solar, nuclear,

geothermal and wind energy– Using carbon capturing technologies to prevent carbon emission reaching

atmosphere – require considerable amount of investment to achieve this• Approach

– Direct Regulation– Subsidies and taxes– Permit trading

Environmental Issues 6

Kyoto Protocol

• Proposal to stabilize GHG emissions• Two principles:

– GHG Emission cap between 2008-2012 to 94.8% of GHG Emission by 1990 (First Commitment Period)

– Flexibility mechanism to transfer limits to another country• Pollution over the limits will have a cost imposed• Three mechanisms for implementation:

– Joint Implementation – countries joining hands to reduce GHG– Emission trading – negotiation between countries on limits– Clean Development Mechanism - Countries to finance reduction projects in

other countries

Environmental Issues 7

Group Discussion

• Why should corporations care about global warming? Will it affect their bottom-line? Why and Why not?

Thank You