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Sara Peary
An International Analysis of Emissions Trading Markets:
Implications for Business Strategy
Sara PearyMaster of International Business
ProgrammeUniversity of Auckland
Business Schoolsarapeary@hotmail.com
Sara Peary
Research at the European Parliament
• NCRE placement: February-May 2005
• Office of UK Conservative Member of Parliament, Neil Parish
• Chair of the Australia-New Zealand Delegation
• Committee on Agriculture and Rural Development
• Committee on Environment, Public Health and Consumer policy
• Vice President of the Animal Welfare Inter-group
• Deputy Chief WHIP, UK Conservatives
• Conservative Party Spokesman on Agriculture and Fisheries
• Committee on Fisheries
Sara Peary
Research and Involvement:
• Attendance and reporting of Committee Sessions, Internal Meetings and Parliament Events
• Observation and Recommendation• Interviewing• Networking• Research and Data Gathering
Sara Peary
Research and Involvement
• Committee on Industry, Research and Energy
• Committee on Foreign Affairs• Committee on International Trade• Conference on Trade and the Environment• United States of America Delegation
Sara Peary
Research and Involvement: Committee on Industry, Research
and Energy• European Union Emissions Trading
Scheme (ETS) (01/05)– Largest multi-country, multi-sector Greenhouse
Gas emission trading scheme world-wide – Formation of the international market for
managing the risks of global climate change
Sara Peary
Research and Involvement: Committee on Industry, Research
and Energy• Various new businesses emerging in
Europe as a result of the EU ETS• EU carbon market: carbon traders, carbon
finance specialists, carbon management specialists, carbon auditors and verifiers
• New financial products: i.e. carbon funds
Sara Peary
"…that which is common to the greatest number has the least care bestowed upon
it. Every one thinks chiefly of his own, hardly at all of the common interest; and only when he is himself concerned as an
individual. For besides other considerations, everyone is more inclined
to neglect the duty which he expects another to fulfil…"
~ Aristotle (Politics, 1262a30-37)
Sara Peary
The Problem of Climate Change
• Rising temperatures, extreme weather events, altered rainfall
• Jeopardising, industries, infrastructures, health, bio security and the broader international economy
• Firms can be significantly effected through costly legislation
Sara Peary
International Responses to Climate Change
• UNFCCC – 1992– First non-binding obligation of
developed countries to stabilise GHG emissions at 1990 levels by the year 2000
• Kyoto Protocol - 1997 – 2/2005 went into force in 141 countries
worldwide
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Kyoto Protocol• Set the framework for emission
reduction programs• Established new policy instruments
or flexible mechanisms intended to encourage economic efficiency in emission reduction
• National legislation or programmes facilitate domestic compliance
Sara Peary
Emissions Trading Under Kyoto
• Among Developed Countries– based on national allocations
• Between Developed and developing countries– Based on project & investment
• Private Sector Firms may participate if their domestic government allows
Sara Peary
Emissions Trading Globally
• Schemes are still in their infancy• Extreme diversity in International
policy and regional implementation of Kyoto
• Uncertianity of Emissions Trading in non-Kyoto Countries
• Need for relevant policy, programme and corporate strategy research
Sara Peary
An International Analysis of Emissions Trading Markets:
Implications for Business Strategy
• To contribute new strategic insights for firms, policy makers and NGOs from an international comparative study of the EU, US, Australian, and New Zealand Emission Trading Markets
Sara Peary
An International Analysis of Emissions Trading Markets:
Implications for Business Strategy
• To investigate the link between emissions trading legislation and firm-level strategy and operations, and to assess implications for firms
Sara Peary
Investigating
• Roles and positions of current policy making institutions, NGOs, and private sector firms in regard to Emissions Trading Markets in the EU, US, Australia and New Zealand
• Nature and relevance of stakeholder interactions of emissions trading markets and what influence do these groups have on each other?
Sara Peary
Investigating
• Strategic and operational preparations and/or changes are firms making in response to being stakeholders in an international emissions trading environment?
• Whether firms in Kyoto party environments making more strategic changes than those in non-Kyoto regions?
European European UnionUnion
United United StatesStates
AustraliaAustralia
New ZealandNew Zealand
NotesNotes
Firm Level:Firm Level:
Private SectorPrivate Sector
Interviews with Industry
Organisations
Interviews Industry
Organisation
Interviews Industry
Organisations
Interviews with Industry Organisation
s
DDIImmeennssIIoonnss
1: Sustainability Focused
Organisation
2: Traditional Industry
Organisation
Institutional Institutional Level:Level:
GovernmentGovernment
Secondary Research:
EU Members of Parliament
EU Commission
European Environment
Agency
State Governments: DEFRA/UK:
Environmental Protection
Secondary Research:
Departments of State and
Energy, Environmental
Protection Agency.
State Governments:
California & New York
Secondary Research:Australian
Greenhouse Office,
Department of the
Environment & Heritage
State
Governments: Victoria & NSW
Secondary Research:
Ministry of Economic
Development
Ministry of Environment,
Ministry of
Foreign Affairs & Trade
Appropriate government institution of each region in charge of emissions
trading policy.
Institutional Institutional Level: Level:
NGO’sNGO’s
The Climate GroupGreenpeace
Friends of the EarthClimate Action Network Europe (CAN)
International Emissions Trading Association (IETA Toronto/Geneva)Carbon Trust- UK
Emissions Trading Markets: Sampling Framework
Sara Peary
Conclusions
• What are the implications for Policy Makers, NGOs and Firms?
• What can be learned from early emissions trading schemes (EU-ETS, UK-ETS)?
• Is there a gap between policy-maker’s expectations and firm level strategic implementations?
• Are there firm level strategic differences between voluntary and legislated regions?
• What can NZ firms learn from business strategies in the EU and other regions?
Sara Peary
An International Analysis of Emissions Trading Markets:
Implications for Business Strategy
For more information contact:Sara Peary
Masters of International BusinessUniversity of Auckland
Business Schoolsarapeary@hotmail.com
027 460 8875