essay energy policy - final
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Going Carbon Neutral - What is motivating the service
sector and what are the implications for energy policy?
Hanoch Ilsar
Assessed essay forEnergy Policy Option Dr. Nick EyreMSc. Environmental Change and Management, ECIOxford UniversityMarch 21, 2008
Word count: 4033
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Index:Index:
I - Introduction ........................................................................................................................3
II - Why voluntarily going Carbon Neutral? ........................................................................5
1. Theoretical background: beyond compliance, environmental proactivity, CSR, and
political economy ......................................................................................................52. Business rationale for GHG reduction ......................................................................72.1 Operational improvement and energy efficiency: ....................................................72.2 Anticipating and influencing climate change regulations ........................................82.3 Accessing new sources of capital ..............................................................................82.4 Improving risk management ......................................................................................92.5 Elevating corporate reputation ...................................................................................92.6 Identifying new market opportunities ......................................................................102.7 Enhancing human resource management and employee morale ............................102.8 Altruism ? .................................................................................................................10
Going Carbon Neutral issues, dilemmas & controversies .............................................12
3. Defining boundaries for inventory, reporting and reduction responsibility ............134. Calculating carbon footprint .....................................................................................145. Reducing organizations emissions to become carbon neutral ................................146. The contested role of Carbon Offsetting: .................................................................15
III - What might be the implications for energy policy? ......................................................18
1. Caution first Can the voluntarism of the private sector be trusted? ...................182. Support its innovation after all! ............................................................................193. Should the government respond? .............................................................................20
IV - Conclusions ....................................................................................................................21
Appendices:Appendices:Appendix A Who is going Carbon Neutral?..............................................................................26
Appendix B The Carbon NeutralConcept........................................................................ ......28
Appendix C - Schematic frameworks to manage companys commitment to reduce GHGemission towards carbon neutrality...............................................................................................29
Appendix D prevailing standards...............................................................................................33
Tables and FiguresTables and Figures::
Table 1: Compiled business examples to reduce GHG emissions (source: Waage andStewart 2006).........................................................................................................................15
Table 2: Associated sources of controversies and uncertainties in the Carbon Neutralconcept 17
Figure 1: scenarios for corporate strategic response to new institutional constraints (Pinkseand Kolk 2007).........................................................................................................................7
Figure 2: Setting operational boundaries: the GHG protocol three scopes for companysdirect and indirect emissions (NZBCSD 2002).....................................................................14
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Figure 3: BSRs three pronged approach to Corporate Climate Strategy (Waage andStewart 2006).........................................................................................................................14
I -I - IntroductionIntroduction
Global warming has finally drawn the attention of the private sector. Last June, Google
Inc., the Web searcher leader, had pledged that it would go Carbon Neutralby the end of
2007 (Gardner 2007), following HSBC (Wright 2006) and quiet a few others (BSR 2007,
see Appendix A for a list). Sixty percent of global executives regard climate change as
strategically important (McKinsey & Company 2008). Last year, over three quarters of the
FT500 companies reported a GHG emission reduction programme, compared to less than
half in the previous year (Innovest 2007). Yet, very few, it appears, are translating these
views into concrete action (Kolk and Hoffmann 2007). According to The Carbon Trust,
only fraction (1%) of UK firms have measured their carbon output, a key first step in any
carbon reduction strategy (BusinessGreen 2007).
Carbon Neutral(or Climate Neutraland other synonyms) is a highly contested concept
(see Appendix B), especially in regard to defining its boundaries, timeframe and stages
(Keay-Bright 2007). In Simplified terms, and for the purpose of this paper, a carbon
neutralorganisation is one which is in the process of effectively reducing its net emissions
to zero. Many enterprises which challenge the traditional civil societyprivate sector
dichotomy are emerging, advocating carbon neutrality services. Many of these voluntary
schemes are originated from and aimed at the service sector. Admittedly, the service sector
has minimal direct emissions. Less likely to become subject to regulation, the service
sector is nevertheless a crucial constituent in the new carbon economy (Gorina 2007),
having a significant impact on upstream and downstream activities (Putt del pino et al.
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2006). Thus, it is interesting to witness how these businesses are proactively leading what
the media has already termed the carbon neutrality hip (Revkin 2007).
Business has become a key part in the fabric of global climate change governance (Levy
2005). Currently though, there is no research evidence as for why businesses are
voluntarily adopting carbon neutrality (EAC 2007). Yet, innovative business strategy to
address climate change might have the potential to trigger a shift towards low-carbon
economy, thus it is significant to energy policy.
Energy policy is traditionally concerned with the government role within the energy
system, and its multiple objectives are: economic efficiency; environmental protection;
fuel-poverty reduction; and energy security (PIU 2002). Since some 80% of all GHGs are
directly the result of energy use, energy policy is the prominent government tool to tackle
the challenge of climate change. There are potentially two market failures associated with
carbon neutrality in the service sector which can be addressed by energy policy: 1)
information failure in which lack of transparency and standardization might result in
market confusion and under-performance; 2) seizing the full potential of businesss
innovation towards a low carbon economy.
This paper attempts to shed light on why businesses are voluntarily going carbon neutral
and what might be the implications for energy policy. The business motivations, explored
in section two, are underpinned by various theoretical perspectives: business management,
Corporate Social Responsibility, legal policy, and environmental governance. In section
three, I overview some prevailing frameworks which provide guidance for businesses
towards carbon neutrality. This endeavour reveals many uncertainties which call for the
attention of policy makers. Better understanding the business motivations, strategies,
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practices and uncertainties that are involved in carbon neutrality is crucial for energy
policy. Drawing from transition and innovation theory I address, in section four, some of
the reasons for the governments facilitating support and the need for standardizations. I
conclude by suggesting further research into this emerging trend.
II -II - Why voluntarily going Why voluntarily going Carbon NeutralCarbon Neutral??
Voluntarily engaging in reducing GHG emissions seems contradictory to business logic.
The traditional business logic suggests that the competitive marketplace will not allow
significant voluntary action (Kleiner 2007). Since the benefits are shared with the public at
large, it can even conceived as a reverse tragedy of the common. Nevertheless, a clear
business case can be made in the context of business strategy to address climate change,
which can prove useful to energy policy.
1.1. Theoretical background: beyond compliance, environmental proactivity, CSR,Theoretical background: beyond compliance, environmental proactivity, CSR,
and political economyand political economy
Understanding why businesses choose to go beyond compliance and engage in voluntary
environmental initiatives is a source of prolific academic writing. Generally, it is suggested
that companies environmental voluntary practices are shaped by the interplay between
their social license to operate, regulatory framework and economic constraints
(Gunnigham et al. 2003, 2004). Simultaneously, internal factors - sometimes refer to as
ecological responsiveness (Bansal and Roth 2000) - influence how managers interpret these
external conditions and act upon them. These factors include: managerial incentives,
organizational culture and identity, self-monitoring (or propensity to engage with
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outsiders), and personal commitment and affiliations (Howard-Grenville et al. 2008). In
addition, environmentally proactive company is believed to be paid off in terms of social
reputation, customer preferences and generation of organizational capabilities (Benito and
Benito 2006, Aragon-Correa and Rubio-lopez 2007).
Embedded within this framework is the idea of Corporate Social Responsibility (CSR). It
covers three dimensions of corporate action (the triple bottom lines): its economic
performance, social accountability and environmental management. Currently contested for
its value creation, it is nonetheless argued that CSR will become a prominent component of
corporate competitive advantage (Wilenius 2005). Neutralizing GHG emissions is a
powerful proactive way to show stakeholders (e.g., customers, shareholders, community,
NGOs) that a company is taking responsibility for emissions and addressing climate change
(ICF 2007).
Examining the political economy of climate change governance can deepen the
understanding of business voluntarism. Currently, it is argued, companies perceive the
varying institutional forms of the carbon regime as fragmented, fungible and weak.
Moreover, they also sustain this fragmented governance regime, both through their political
advocacy, and through the legitimacy conferred by their voluntary initiatives (Pinkse and
Kolk 2007, Jones and Levy 2007). Company might choose to respond to this fragmented
policy regime in four ways: as conformist, evader, entrepreneur or as arbitrageur (Figure
1). These choices varied according to anticipated institutional constraints and opportunities
for influencing the institution. Nonetheless, companies are currently placing greater
emphasis on management processes, policy influence, and market image than on major
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investments in low-emission technologies. Similarly, they engage in building capacity for
emissions trading infrastructure over actual emissions reductions (Jones and Levy 2007).
Figure 1: scenarios for corporate strategic response to newinstitutional constraints (Pinkse and Kolk 2007)
In this context, climate change is becoming a strategic issue for companies. It represents a
market transition with great financial, regulatory and CSR opportunities vis a vis grave
implications.
2.2. Business rationale for GHG reductionBusiness rationale for GHG reduction
Business strategy towards GHG reduction is context dependant. Following Hoffman
(2005), the following paragraphs suggest eight clustered categories to encompass how
companies have presently sought strategic benefits from voluntary GHG reduction:
2.1 Operational improvement and energy efficiency:
Tracking GHG sources of emissions can reveal inefficiencies in the supply chain,
distribution and use of resources. Uncovering such inefficiencies is financially good
business, especially when energy prices are going up (Putt del pino et al. 2006).
Implementing energy efficiency and conservation measures can reduce energy
consumption and costs. Examples are numerous (Hoffman 2006).
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2.2 Anticipating and influencing climate change regulations
More than 80% of global executives expect climate change regulation within five years,
mostly in form of technical rules and standards. Five in ten anticipate either a carbon cap-
and-trade system or carbon tax (McKinsey & Company 2008). Currently though,
regulatory risks are highly uncertain (Innovest 2007).
By voluntarily measuring and assigning costs to carbon emissions, a company can prepare
for a future carbon-constrained economy in which GHG emissions are regulated, taxed
and/or traded. Moreover, a proactive strategy that seeks to influence policies and future
regulations can benefit companys particular climate change positioning. Those that are
most prepared in advance can lobby the government to adopt certain GHG requirements,
methods and protocols which they are already familiar with. BP and Shell, for example,
had already gained an advisory role in the development of UK and EU emission trading
schemes respectively (Hoffman 2005).
2.3 Accessing new sources of capital
Both the voluntary and the compliance carbon markets are growing rapidly.The World
Bank estimated the value of carbon trading at almost $30 billion in 2006,
three times greater than the previous year (World Bank 2007).
Considerable profits are likely to be made from trading in carbon
reductions, which have already gained the title accumulation by
decarbonisation (Bumpus and Liverman, forthcoming). Benefits were obtained,
for example, by European companies who were given generous permits to
emit CO2 in the EU-ETS and were able to sell any excess over required
reductions.
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Furthermore, governments are introducing financial incentives to reduce GHGs, which
represent an availability of capital to be appropriated (Hoffman 2005).
2.4 Improving risk management
Climate change poses new risks on companies whose exposure differs within sectors,
locations and operations. In addition to a company's carbon constraint profile (Busch and
Hoffmann 2007), these risks are associated with the following: costs of climate-related
natural consequences; supply chain risks (for retailers); legal liability risk; brand risk
(Carbon Trust 2005); and regulatory/market changes risks (Lash and Wellington 2007).
Some industries are more vulnerable than others to the physical impacts of climate change.
Insurance, financial, tourism and real estate companies are prone to losses due to such
impacts, especially in vulnerable areas (Putt del pino et al. 2006, Busch and Hoffmann
2007, Lash and Wellington 2007).
Investors are particularly interested in the climate-related risk positioning of companies.
The Carbon Disclosure Project, for example, on behalf of 315 institutional investors
representing $41 trillion in assets, is tracking the 500 global largest publicly traded
companies to gain investor-relevant information on their responses to climate change,
focusing on commercial risks and opportunities (Innovest 2007).
2.5 Elevating corporate reputation
There are opportunities in improving reputation through voluntary GHG initiatives, when
these are communicated to the relevant constituencies (Wright 2006). The Carbon Trust
forecasts that climate change could become a mainstream consumer issue by 2010
(Carbon Trust 2005). The Mckinsey Global Survey revealed that corporate reputation
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(54%), customer preferences (35%) and media attention (34%) are influencing companies
the most to take climate change into considerations (Mckinsey & Company 2008).
2.6 Identifying new market opportunities
Opportunities that stem from new markets for low carbon products and services are
prevailing. These opportunities can diversify companies portfolio of products/services and
reach wider constituencies. First movers in the area of carbon neutrality are likely to gain
an edge over business-as-usual competitors (ICF 2007). Such opportunities range from
energy efficient mortgage, to preferential insurance rate for efficient vehicles (TCG 2007).
Banks are offering new carbon management services and investment products, and adding
carbon offsetting features to their suite of retail products (Gorina 2007).
Engaging in carbon measuring implies remaining alert to changes in consumer preferences,
media attention, community concerns, and regulatory and policy trends (Hoffman 2005).
Staying attuned to this dynamic market is crucial for businesss competitiveness.
2.7 Enhancing human resource management and employee morale
Companies are engaging their workers as partners in identifying and carrying out strategies
to reduce their GHG emissions. It can motivate employees and drive innovation within
companies, becoming an opportunity to increase workplace productivity as well as enhance
good employee recruitment and retention efforts (Hoffman 2005).
2.8 Altruism ?
Finally, in the case of non-residential green power, at least, it has been demonstrated that
also altruism is taking an important role in customers motivations (Wiser et al. 2001).
To conclude this section, we should bear in mind that:
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[Companies] are searching for ways to be prepared for the long term,
should GHG emission reduction become mandatory, while at the same
time attempting to reap near-term economic and strategic benefits should
that future not emerged or be delayed (Hoffman 2005).
But there is more to it. To gain competitive advantage, businesses need to do better in
reducing exposure to climate-related risks and in finding business opportunities within
those risks (Lash and Wellington 2007). In such a vibrant atmosphere, there is a strong case
to suggest that at least some of the carbon neutral initiatives are a demonstration of real
business leadership in face of market transition and governance uncertainties. For such
companies, Carbon Neutral is not only an ecological or ethical imperative. It is also an
indicator of an organizations health, innovation and social responsibility (Boiral 2006).
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GoingGoing Carbon NeutralCarbon Neutral issues, dilemmas & controversies issues, dilemmas & controversies
Drawing from experience and best practice of large corporations, few organizations (non
profit, governmental and for-profit) have developed a comprehensive business manual to
address such carbon neutralstrategy. These how to manuals differ in their approach and
emphasis which can probably be explained by the providers concerns, interests and
constituencies (Climate Neutral Network 2003, Hoffman 2006, Putt del pino et al. 2006,
Carbon Trust 2006, Waage and Stewart 2006, TCNC 2007, ICF 2007, Lash and Wellington
2007). SeeAppendix Cfor some chosen schematic examples.
Nevertheless, an emergent framework for carbon management towards carbon neutrality
can be distinguished and delineated. The constituents of such a framework include:
Preliminary planning and boundaries setting;
Designing and developing GHG inventory;
Calculating carbon footprint;
Evaluating opportunities/risks for carbon reductions;
Setting goals and targets;
Implementing carbon reduction program for direct and indirect
emission;
Engaging in carbon offsetting; and
Reporting.
Since a full description of these components is outside the scope of this paper, thefollowing is focused on the main contested issues that call for energy policy attention and
presumably intervention.
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3.3. Defining boundaries for inventory, reporting and reduction responsibilityDefining boundaries for inventory, reporting and reduction responsibility
Setting boundaries is a clearly important if perplexing and contested question. What does
carbon neutrality apply to (e.g. organization, product, service, operation)? What are the
respective methodologies, data-sets and perspectives? (TCNC 2007) What is the scope of
emissions to be calculated and neutralized? What is the extent to which both upstream and
downstream emissions are covered? (TCG 2007) What are the emissions, which are under
full control of the organization and how to engage with indirect sources of emissions?
(Carbon Trust 2006) How to account for emissions from joint ventures, subsidiaries,
outsourcing and other partially owned entities and operations? (Sundin and Ranganathan2002)
The GHG Protocol is offering some answers to these questions (WRI/WBCSD 2004).
Figure 2 is demonstrating different scopes of emissions. This protocol is one of the most
recommended and commonly used formats for accounting and reporting GHG emissions
(e.g. Carbon Trust 2006, UN EMG 2007, Innovest 2007, TCNC 2007). Nevertheless, offset
providers may have developed their own proprietary standards and there is still no
internationally accepted procedure for assessing and reporting GHG emissions and
emissions reductions (TCG 2007, Carbon Trust 2006). Some discrepancies and gaps are
salient when comparing the aforementioned guides.
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Figure 2: Setting operational boundaries: the GHG protocol three scopes for companys direct and indirectemissions (NZBCSD 2002)
4.4. Calculating carbon footprintCalculating carbon footprint
Several calculation tools for GHG emission are prevailing. There is still debate concerning
some of the science behind calculating carbon emissions, e.g. from aviation. Apparently,
different tools varying in their emission assessment (POST 2007), which brought DEFRA
to release a standard emission calculator on its website.
5.5. Reducing organizations emissions to become carbon neutralReducing organizations emissions to become carbon neutral
Figure 3: BSRs three pronged approach toCorporate Climate Strategy (Waage and Stewart 2006)
There are numerous ways to reducing GHG emissions. Generally speaking, a three-
pronged approach include: improving efficiency of energy use, procurement of green
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energy and offsetting the remaining emissions. There is also a real gain to be made through
integrated strategic planning and synergies throughout all aspects of the business (Waage
and Stewart 2006). Some examples of business practices are presented in Table 1.
Table 1: Compiled business examples to reduce GHG emissions (source: Waageand Stewart 2006)
6.6. The contested role of Carbon Offsetting:The contested role of Carbon Offsetting:
Based on the principle that GHG emissions reduction achieved elsewhere has the same
positive effect as a reduction made locally, a company can effectively neutralize its global
warming impact by purchasing carbon offsets (ICF 2007), though it is more palatable when
considered a last resort (Keay-Bright 2007). It is further argued that the voluntary carbon
market can complement the regulated market, compensating for its deficiencies, and
hedging policy risks through institutional diversity (Hepburn 2007). Carbon offset market
helps in establishing price for carbon, speeds investments in low carbon technologies, and
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can raise awareness to individual and organizational carbon footprint (TCNC 2007).
Further, it can support diversity of project types that are effectively excluded from the
CDM such as small projects, those that bring additional sustainable development benefits
and those that are based in under-represented countries as in Africa (EAC 2007).
Nevertheless, offsets have been extensively criticized by NGOs (Smith 2007) and the
media (Revkin 2007, Harvey 2007), and advised to be considered cautiously (Carbon Trust
2006, POST 2007). The quality and credibility of the offset are a recurrent theme of
concern. To address these, questions of verification, additionality, leakages,
impermanency, and double counting must be addressed (Carbon Trust 2006).
Yet, the main concern is that the availability of offsetting options may well hinder
behavioural change to a low carbon economy. While reducing a tonne of carbon, wherever
the source might be, have the same atmospheric impact, different reductions have varying
long-term impacts in terms of technological innovation, market transformation, and
infrastructural transition (WWF 2008).
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Table 2: Associated sources of controversies and uncertainties in the Carbon Neutralconcept
To sum up this section, it is important to concede that the concept ofcarbon neutralmight
be a source of confusion and perplexities (see Table 2 for a summery). Public confusion
might deter the bulk of mainstream organizations from voluntarily taking any action before
standards and regulations are established, subsequently raising the question of government
intervention.
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III -III - What might be the implications for energy policy?What might be the implications for energy policy?
Carbon Neutrality, a voluntary initiative by the service sector, does not simply fall into a
classical market failure which justify governments intervention in energy systems (PIU
2002). Given its innovative and leadership potential coupled with the involved
uncertainties, I would suggest that policy makers should approach the carbon neutral
business from a supportive if cautious stance.
1.1. Caution first Can the voluntarismCaution first Can the voluntarismofofthe private sector be trusted?the private sector be trusted?
Adopting carbon neutrality by the service sector, well beyond current policies, may be
seen as a panacea to policy makers worried about mitigating climate change. If these
pioneers drag the current economy towards de-carbonization, the government would be left
out of job. Nonetheless, such a bright scenario is probably far from realization.
Past evidence demonstrates that policy makers can not rely on the voluntary programs,
pledges or even agreements made by the private sector. Studies have shown that participant
firms in voluntary programs - especially those with no performance based standards, no
independent certification, and no sanctions - showed no better environmental performance
than non-participants (Rivera and DeLeon 2008, Darnall and Sides 2008). In the case of
ISO 14001, for example, an ambiguous effect on environmental performance was apparent
- counter to the managerial rhetoric (Boiral 2007). A notorious example for not trusting
voluntary pledges is the agreement between the European Commission and the EuropeanCar Manufacture Association (ACEA), signed in 1998. The motor industry has currently
failed to meet its voluntary target for reducing CO2 emissions (FOE 2007).
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Furthermore, these high media-profile carbon neutral initiatives are posing three-folded
danger in face of policy makers: (1) an entrenched public misconception that the private
sector is on the right track to achieving carbon neutrality might blunt the climate change
message which sense of urgency is crucial; (2) carbon neutralclaims without long-term
structural change might undermine the scope of the challenge (its easy, my bank is doing
it!); (3) the much-needed strong international regime is enervated by the private sector
compelling advocacy for voluntary measures over regulations (Jones and Levy 2007).
Consequently, public support for what is really needed might be at stake. Further, policy
makers might miss the train and become laggards. When trying to bring on new policiesor enforce new standards policy makers might not only face stronger objections from a
wide coalition of NGOs and private sector, but also be committed to already prevailing
practices and measures of these actors, e.g. Defras Code of Best Practice(DEFRA 2008,
WWF 2008).
2.2. SupportSupport its innovation its innovation afterafterall!all!
Notwithstanding these caveats, it can be argued that high-profile initiatives in a high-stakes
competitive market generate a vibrant atmosphere of climate change transition and
innovation. Can carbon neutrality be effectively seen as an innovation?
Innovation has a major rule in enabling the transition needed to tackle the climate change
challenge of decarbonizing the economy (Foxton 2003, Stern 2006, Shackley and Green
2007). It is broadly defined as a successful exploitation of new ideas, and is understood as
an interactive process engaging network of actors, in which new products, new processes
and new forms of organization are brought into economic use (Mytelka 2000, Beerepoot
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2007). Central to innovation policy is the facilitation of rapid diffusion of these new ideas
into the larger market place (Stern 2006, Egmond et al. 2006).
The carbon neutral companies are demonstrating leadership in a new environment.
Although differ in their profile to technological innovators or early market adopters, mainly
in size and risk aversion (Egmond et al. 2006) they do feature some of the early adopters
qualities. Further, they are in a position to explore novel perception and ideas within their
large organizations. Carbon management on the way to neutralize business emissions is a
novel idea which involves many new practices. Leading the way, they have an important
role to play in a time of a much-desired transition.
3.3. SShould the governmenthould the governmentrespondrespond??
Policy makers can diminish many of the aforementioned concerns by enhancing
standardization in the market, while seizing the opportunity to support and facilitate the
market momentum.
Conceiving the carbon neutrality trend akin to innovation policy may reason for the
government to consider incentives and support scheme for such activities. Furthermore,
since transition cannot be steered by a central actor and there is probably no blue-print for
innovation policy (Foxton 2003, Shackley and Green 2007), the role of the government is
to facilitate and challenge the innovation network through knowledge transfer, stimulating
communication, and demonstrations challenge (Egmond et al. 2006).
Standards, on the other hand, can help bring on the mainstream market actors. Standards
have many advantages that are directly link to the business of carbon neutrality (See
Appendix D for carbon neutral relevant standards). Standardization contributes to increase
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clarity and confidence of the companies wanting to make a voluntary commitment to
reduce their climate impact (TCG 2007, Hepburn 2007). Recent EC communication
suggested that it has an important role in support of innovation (EU CEC 2008) and it is a
prerequisite to any governmental incentive scheme. Standardisation helps in developing
disclosure rules for carbon reporting. It also ensures compatibility with the legal framework
(e.g. corporate managers legal liability). Even in the case of CSR, stringent regulations
were suggested not only for stakeholders certainty sake but for increased shareholders
value as well (Unerman and ODwyer 2007). Finally, it serves to protect less informed
consumers from making undesirable choices and can help in climate change education(DEFRA 2008).
IV -IV - ConclusionsConclusions
It is probably too early to tell what are the full implications of the service sectors proactive
Carbon Neutralenterprises.
Yet, two points need to be made clear. First, the potential impact of these initiatives on low
carbon economy can not be dismissed. Therefore, a supportive yet cautious attitude need be
adopted by policy makers, rather than wait-and-see. Second, a consensus definition of
what carbon neutralmeans plus respective standards should be developed to allow for
audit and verification to bring legitimacy to this claim (EAC 2007). I have argued thatenergy policy should support, facilitate and challenge these enterprises while
simultaneously improving the rigour of credible standards to ensure broad market
diffusion.
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Further research is important to gain better comprehension of the carbon neutrality
business and respective implications for energy policy. It can address the following
questions: What is the effect of offsetting initiatives on business carbon abatement
performance? What are the motivations and reasons for businesses going carbon neutral?
What is the market impact of leading firms achieving carbon neutrality? And, what
policies can be developed to facilitate and challenge this positive trend towards low carbon
business environment?
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