Business will be a leading driver for climate change as the effects of the Copenhagen Accord begin to impact world economies, finds a KPMG white paper launched today.
Economies reliant on manufacturing, resources and services will each be affected by the Accord uniquely; with these nations and individual companies now challenged to assess its impact and their response.
KPMG International's white paper, The Copenhagen Accord, a view of work in progress, provides detailed insights to business of the immediate impacts it could have on global business operations and trade.
KPMG's Global Head of Climate Change and Sustainability and partner in the US firm, Ted Senko said: "The Copenhagen Accord has been largely underestimated by business as it failed to be finalized. However, it resulted in a powerful agreement by the world's leaders, including developing and developed nations, that there must be a global, long term response to climate change. The Accord opens up many opportunities to business and understanding its detail can help business in the race to the top."
The white paper gives a statement-by-statement analysis of the Accord with the aim of unraveling its concepts and the science of climate change. It then examines the potential implications of the Accord for business and assesses how it might influence new developments and trends in global policy investment and trade patterns.
Mr. Senko said: "The key mechanism of the Copenhagen Accord includes Public Private Partnerships (PPPs) that will allow for private investors in green initiatives to share financial risks with governments. Going forward the Accord opens up many possibilities for facilitating the flow of capital required to fund green opportunities and should have a strong impact on the green investment trend."
Mr. Senko said the developments that are likely to have the most significant impact on business are the emergence of mitigation mechanisms and changes in investment patterns in response to low-carbon opportunities.
"Business will need to learn how to operate in a world with many different climate change and emission reduction policies such as an import tariff on coal in India or a ban on the construction of new coal fired generation plants in developing nations."
"The Copenhagen commitment from the international community to support developing nations minimize their carbon output has put US$100 billion of investment opportunity on the table. Understanding and preparing for the different scenarios that might arise from the Accord and subsequent policies are a business imperative. Businesses that fail to understand this will be left behind."
"As world governments work to refine policy, it is evident that the business community should begin working to capitalize on opportunities including the development of financial instruments and carbon mitigation."
The full report, can be downloaded here.
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