Communicating the climate impacts of meat consumption: The effect of values and message framing

Meat production for human consumption has serious environmental implications and contributes significantly to climate change. Changing people’s food choices is an important step towards reducing human impacts on the climate. Previous research shows that self-enhancement (i.e. self-interest) and self-transcendence (i.e. altruism) values are related to meat consumption. This study examined the effectiveness of the provision of information about climate impacts of meat consumption in influencing concern about these climate impacts of meat consumption, attitudes towards eating meat and behavioural intentions in a New Zealand sample (N = 848). Further, the study examined whether framing the message to align with people’s value sets would enhance the information’s effectiveness in affecting concern, attitudes and intentions. Survey participants were randomly assigned to a no-information control group, a message targeting self-enhancement values, or a message targeting self-transcendence values. Results indicated that the information provision was associated with significantly higher levels of concern about the climate impacts of meat consumption and significantly lower intentions to eat meat, but it did not affect attitudes towards meat consumption. However, the framing of the message did affect attitudes towards meat consumption, depending on existing values. Implications of this research can be applied to future climate change communication campaigns, through the use of targeted, value-congruent information.     

The global scale,distribution and growth of aviation: Implications for climate change

Prior to the COVID-19 crisis, global air transport demand was expected to triple between 2020 and 2050. The pandemic, which reduced global air travel significantly, provides an opportunity to discuss the scale, distribution and growth of aviation until 2018, also with a view to consider the climate change implications of a return to volume growth. Industry statistics, data provided by supranational organizations, and national surveys are evaluated to develop a pre-pandemic understanding of air transport demand at global, regional, national and individual scales. Results suggest that the share of the world’s population travelling by air in 2018 was 11%, with at most 4% taking international flights. Data also supports that a minor share of air travelers is responsible for a large share of warming: The percentile of the most frequent fliers – at most 1% of the world population - likely accounts for more than half of the total emissions from passenger air travel. Individual users of private aircraft can contribute to emissions of up to 7,500 t CO₂ per year. Findings are specifically relevant with regard to the insight that a large share of global aviation emissions is not covered by policy agreements.     

Barriers perceived to engaging with climate change among the UK public and their policy implications

This paper reports on the barriers that members of the UK public perceive to engaging with climate change. It draws upon three mixed-method studies, with an emphasis on the qualitative data which offer an in-depth insight into how people make sense of climate change. The paper defines engagement as an individual's state, comprising three elements: cognitive, affective and behavioural. A number of common barriers emerge from the three studies, which operate broadly at ‘individual’ and ‘social’ levels. These major constraints to individual engagement with climate change have implications for achieving significant reductions in greenhouse gases in the UK. We argue that targeted and tailored information provision should be supported by wider structural change to enable citizens and communities to reduce their carbon dependency. Policy implications for effective engagement are discussed.     

Empirical testing of the visualizations of climate change mitigation scenarios with citizens: A comparison among Germany,Poland, and France

While scenarios are used extensively for communication about climate change mitigation, little is known about the interpretation of these scenarios by citizens. We conducted a cross-country empirical evaluation of scenario visualizations for global mitigation, using online surveys in Germany (N = 379), Poland (N = 223), and France (N = 225). Each respondent received visualizations of the required changes in global carbon dioxide emissions and composition of electricity supply (fossil fuels, nuclear, and renewable sources) for limiting global warming to 1.5 °C. We evaluated the effects of respondents’ demographics, prior beliefs, numeracy, and graph literacy on the reading accuracy and knowledge gains from the visualizations. We also included an experimental between-groups design on visualization format, where four groups received different graph formats (steep or gradual graphs with depictions of uncertainty ranges or scenario ensembles) and the fifth group received a table. Results showed that higher education level, numeracy, and graph literacy increased reading accuracy in all countries, while age reduced them. Respondents with prior beliefs about climate change mitigation that matched the information in the visualizations had also higher reading accuracy and knowledge gains. While the effects of different visualization formats were comparatively minor, customizing formats according to demographic and country differences was used to reduce adverse effects from these differences. These results emphasize the need to design visualizations that match characteristics of the intended audience and could inform better communication of climate change mitigation scenarios to non-expert audience.     

Triggering the low-carbon transition in the aftermath of the global financial crisis

An assessment of the post-Kyoto climate change negotiations, and the altered role of climate finance post-financial crisis, is presented. First, the paradigm shift of the Cancun Agreements is examined from an historical perspective and it is shown that the impasse in the negotiations, caused by the underlying over-emphasis on burden sharing reductions in emissions, can be overcome. Second, using information from two modelling exercises, it is demonstrated how climate finance can encourage the decoupling of carbon emissions from economic growth and thereby help align the development pattern with global climate goals. Third, a framework to place carbon finance within current discussions is sketched regarding both the reformation of the world financial systems and the facilitation of a sustainable economic recovery that is beneficial for North and South while addressing the low-carbon transition. It is concluded that upgrading climate finance is the key to triggering the shift to a low-carbon society and a system is proposed in which an agreed social cost of carbon is used to support the establishment of carbon emissions certificates to reorient a significant portion of global savings towards low-carbon investments.

Policy relevance

Investments that align development and climate objectives are shown to substantially lower the social cost of carbon and deliver long-term carbon emissions reductions. These reductions are greater than those contributed by the sole carbon price signal generated by a world cap-and-trade system. Carbon finance, as a part of the broader reform of financial systems and overseas aid, can help overcome the dual adversity of climate and financial crisis contexts. The carbon certificate, with an upfront agreed social cost of carbon, can be used as its instrument. The portion of the banking system that intends to reorient a significant part of world savings towards low-carbon investments could thus issue such carbon certificates. By giving carbon assets the status of a reserve currency, the system could even respond to the need of emerging countries to diversify their foreign exchange reserves and trigger a wave of worldwide sustainable growth through infrastructure markets.     

Public engagement with carbon and climate change: To what extent is the public ‘carbon capable’?

The relevance of climate change for society seems indisputable: scientific evidence points to a significant human contribution in causing climate change, and impacts which will increasingly affect human welfare. In order to meet national and international greenhouse gas (GHG) emissions reduction targets, there is an urgent need to understand and enable societal engagement in mitigation. Yet recent research indicates that this involvement is currently limited: although awareness of climate change is widespread, understanding and behavioral engagement are far lower. Proposals for mitigative ‘personal carbon budgets’ imply a need for public understanding of the causes and consequences of carbon emissions, as well as the ability to reduce emissions. However, little has been done to consider the situated meanings of carbon and energy in everyday life and decisions. This paper builds on the concept of ‘carbon capability’, a term which captures the contextual meanings associated with carbon and individuals’ abilities and motivations to reduce emissions. We present empirical findings from a UK survey of public engagement with climate change and carbon capability, focusing on both individual and institutional dimensions. These findings highlight the diverse public understandings about ‘carbon’, encompassing technical, social, and moral discourses; and provide further evidence for the environmental value-action gap in relation to adoption of low-carbon lifestyles. Implications of these findings for promoting public engagement with climate change and carbon capability are discussed.     

Investing in low-carbon transitions: energy finance as an adaptive market

The amount of capital required to transition energy systems to low-carbon futures is very large, yet analysis of energy systems change has been curiously quiet on the role of capital markets in financing energy transitions. This is surprising given the huge role finance and investment must play in facilitating transformative change. We argue this has been due to a lack of suitable theory to supplant neoclassical notions of capital markets and innovation finance. This research draws on the notion from Planetary economics: Energy, climate change and the three domains of sustainable development, by Grubb and colleagues, that planetary economics is defined by three ‘domains’, which describe behavioural, neoclassical, and evolutionary aspects of energy and climate policy analysis. We identify first- and second-domain theories of finance that are well established, but argue that third-domain approaches, relating to evolutionary systems change, have lacked a compatible theory of capital markets. Based on an analysis of electricity market reform and renewable energy finance in the UK, the ‘adaptive market hypothesis' is presented as a suitable framework with which to analyse energy systems finance. Armed with an understanding of financial markets as adaptive, scholars and policy makers can ask new questions about the role of capital markets in energy systems transitions.

Policy relevance

This article explores the role of financial markets in capitalising low-carbon energy systems and long-term change. The authors demonstrate that much energy and climate policy assumes financial markets are efficient, meaning they will reliably capitalise low-carbon transitions if a rational return is created by subsidy regimes or other market mechanisms. The authors show that the market for renewable energy finance does not conform to the efficient markets hypothesis, and is more in line with an ‘adaptive’ markets understanding. Climate and energy policy makers that design policy, strategy, and regulation on the assumption of efficient financial markets will not pay attention to structural and behavioural constraints on investment; they risk falling short of the investment levels needed for long-term systems change. In short, by thinking of financial markets as adaptive, the range of policy responses to enable low-carbon investment can be much broader.     

Beyond climate,culture and comfort in European preferences for low-carbon heat

It is imperative that climate, energy, and sustainability policy researchers and practitioners grapple with the difficulty of decarbonizing heat, which remains the largest single end-use energy service worldwide. In this study, based on a comparative assessment of five original and representative national surveys in Germany, Italy, Spain, Sweden, and the United Kingdom (N = 10,109), we explore public attitudes of household heat decarbonization in Europe. We explore how people conceive of the purposes of low-carbon heat, their preferences for particular forms of heat supply, and their (at times odd) practices of heat consumption and temperature settings. The data reveal four significant challenges to heat decarbonization that are consistent across geographies: 1) High satisfaction with existing, often fossil fuel based, heating systems; 2) Varying and divergent preferences and expectations for thermal comfort; 3) Householders unlikely to change their heating system in the near-term, in part driven by low familiarity and knowledge of alternative systems; and 4) heat satisfaction appears lower as the fuel mix is decarbonized. The paper concludes by connecting these findings with policy and research implications.     

The climate change mitigation impacts of active travel: Evidence from a longitudinal panel study in seven European cities

Active travel (walking or cycling for transport) is considered the most sustainable and low carbon form of getting from A to B. Yet the net effects of changes in active travel on changes in mobility-related CO₂ emissions are complex and under-researched. Here we collected longitudinal data on daily travel behavior, journey purpose, as well as personal and geospatial characteristics in seven European cities and derived mobility-related lifecycle CO₂ emissions over time and space. Statistical modelling of longitudinal panel (n = 1849) data was performed to assess how changes in active travel, the ‘main mode’ of daily travel, and cycling frequency influenced changes in mobility-related lifecycle CO₂ emissions.We found that changes in active travel have significant lifecycle carbon emissions benefits, even in European urban contexts with already high walking and cycling shares. An increase in cycling or walking consistently and independently decreased mobility-related lifecycle CO₂ emissions, suggesting that active travel substituted for motorized travel – i.e. the increase was not just additional (induced) travel over and above motorized travel. To illustrate this, an average person cycling 1 trip/day more and driving 1 trip/day less for 200 days a year would decrease mobility-related lifecycle CO₂ emissions by about 0.5 tonnes over a year, representing a substantial share of average per capita CO₂ emissions from transport. The largest benefits from shifts from car to active travel were for business purposes, followed by social and recreational trips, and commuting to work or place of education. Changes to commuting emissions were more pronounced for those who were younger, lived closer to work and further to a public transport station.Even if not all car trips could be substituted by active travel the potential for decreasing emissions is considerable and significant. The study gives policy and practice the empirical evidence needed to assess climate change mitigation impacts of urban transport measures and interventions aimed at mode shift to more sustainable modes of transport. Investing in and promoting active travel whilst ‘demoting’ private car ownership and use should be a cornerstone of strategies to meet ‘net zero’ carbon targets, particularly in urban areas, while also reducing inequalities and improving public health and quality of urban life in a post-COVID-19 world.     

A Chinese commitment to commit: can it break the negotiation stall?

Preparatory talks to the next round of negotiations seem to indicate that a comprehensive agreement to mitigate climate change will not be easily attainable, despite the intentions of the US administration and the high expectations surrounding the Copenhagen meeting. One key reason is to what extent fast growing economies, and especially China, should take actions to reduce their growth of emissions. This paper argues that a turning point for international negotiations on climate change could be achieved if China were to agree on carbon obligations in the future. Results from modelling work suggest that the optimal investment behaviour is to anticipate the implementation of a climate policy by roughly 10 years, and that thus future commitments—if credible—could lead to significantly earlier steps towards carbon mitigation. If fast growing economies, and foremost China, believe in the long term objective of global stabilization of carbon concentrations, it might be economically rationale to sign on future targets, provided developed countries take on immediate action. Such a provision could be beneficial for both the developing and developed world.     

The transportation sector and low-carbon growth pathways: modelling urban,infrastructure, and spatial determinants of mobility

This article contributes to the controversial debate over the effect of spatial organization on CO₂ emissions by investigating the potential of infrastructure measures that favour lower mobility in achieving the transition to a low-carbon economy. The energy–economy–environment (E3) IMACLIM-R model is used to provide a detailed representation of passenger and freight transportation. Unlike many of the E3 models used to simulate mitigation options, IMACLIM-R represents both the technological and behavioural determinants of mobility. By comparing business-as-usual, carbon price only, and carbon price combined with transport policy scenarios, it is demonstrated that the measures that foster a modal shift towards low-carbon modes and a decoupling of mobility needs from economic activity significantly modify the sectoral distribution of mitigation efforts and reduce the level of carbon tax necessary to reach a given climate target relative to a ‘carbon price only’ policy.

Policy relevance

Curbing carbon emissions from transport activities is necessary in order to reach mitigation targets, but it poses a challenge for policy makers. The transport sector has two peculiarities: a weak ability to react to standard pricing measures (which encourages richer policy interventions) and a dependence on long-lived infrastructure (which imposes a delay between policy interventions and effective action). To address these problems, a framework is proposed for analysing the role of transport-specific measures adopted complementarily to carbon pricing in the context of international climate policies. Consideration is given to alternative approaches such as infrastructure measures designed to control mobility through less mobility-intensive denser agglomerations, investment reorientation towards public mode, and logistics reorganization towards less mobility-dependent production processes. Such measures can significantly reduce transport emissions in the long term and hence would moderate an increase in the carbon price and reduce its more important detrimental impacts on the economy.     

International and national climate policies for aviation: a review

Aviation constitutes about 2.5% of all energy-related CO₂ emissions and in addition there are non-CO₂ effects. In 2016, the ICAO decided to implement a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and in 2017 the EU decided on faster emission reductions in its Emissions Trading System (EU ETS), which since 2012 includes the aviation sector. The effects of these policies on the expected development of air travel emissions from 2017 to 2030 have been analyzed. For the sample country Sweden, the analysis shows that when emissions reductions in other sectors are attributed to the aviation sector as a result of the EU ETS and CORSIA, carbon emissions are expected to reduce by ?0.8% per year (however if non-CO₂ emissions are included in the analysis, then emissions will increase). This is much less than what is needed to achieve the 2°C target. Our analysis of potential national aviation policy instruments shows that there are legally feasible options that could mitigate emissions in addition to the EU ETS and CORSIA. Distance-based air passenger taxes are common among EU Member States and through increased ticket prices these taxes can reduce demand for air travel and thus reduce emissions. Tax on jet fuel is an option for domestic aviation and for international aviation if bilateral agreements are concluded. A quota obligation for biofuels is a third option.

Key policy insights

• Existing international climate policies for aviation will not deliver any major emission reductions.

• Policymakers who want to significantly push the aviation sector to contribute to meeting the 2°C target need to work towards putting in place tougher international policy instruments in the long term, and simultaneously implement temporary national policy instruments in the near-term.

• Distance-based air passenger taxes, carbon taxes on jet fuel and quota obligations for biofuels are available national policy options; if they are gradually increased, and harmonized with other countries, they can help to significantly reduce emissions.

     

The emissions responsibility accounting of multinational enterprises for an efficient climate policy

The achievement of global warming limits below 2 °C and 1.5 °C requires deeper involvement of nonstate and subnational actors. In this paper, we focus on multinational enterprises (MNEs) and propose a new technology-adjusted investment-based emission accounting (TIBA) system that considers the technology gap between parent companies and their foreign affiliates. Specifically, TIBA rewards the home regions that transfer clean technology to host regions through MNEs to reduce global emissions and penalizes home regions that expand with high emission intensities through MNEs to increase global emissions. Under the TIBA system, the economies with high outward foreign direct investment stocks are assigned significantly higher responsibilities of emissions than under the production-based accounting (PBA), such as the United States, major European economies, Japan, and Canada. However, the increases in responsibilities differ sharply, depending on their investing regions and industries, as well as the technology transfers. Moreover, our measurements suggest that ideal technology transfers under TIBA would reduce emissions by up to 3,762 Mt, accounting for ∼16% of global Carbon Dioxide emissions from industrial processes involving fossil fuel combustion in 2016. This implies that there is room for improvement in low-carbon technology transfers through MNEs to combat global climate change. Thus, we argue that TIBA targets an efficient policy that highlights the role of MNEs.     

Ranking the risk of CO2 emissions from seagrass soil carbon stocks under global change threats

Seagrass meadows are natural carbon storage hotspots at risk from global change threats, and their loss can result in the remineralization of soil carbon stocks and CO₂ emissions fueling climate change. Here we used expert elicitation and empirical evidence to assess the risk of CO₂ emissions from seagrass soils caused by multiple human-induced, biological and climate change threats. Judgments from 41 experts were synthesized into a seagrass CO₂ emission risk score based on vulnerability factors (i.e., spatial scale, frequency, magnitude, resistance and recovery) to seagrass soil organic carbon stocks. Experts perceived that climate change threats (e.g., gradual ocean warming and increased storminess) have the highest risk for CO₂ emissions at global spatial scales, while direct threats (i.e., dredging and building of a marina or jetty) have the largest CO₂ emission risks at local spatial scales. A review of existing peer-reviewed literature showed a scarcity of studies assessing CO₂ emissions following seagrass disturbance, but the limited empirical evidence partly confirmed the opinion of experts. The literature review indicated that direct and long-term disturbances have the greatest negative impact on soil carbon stocks per unit area, highlighting that immediate management actions after disturbances to recover the seagrass canopy can significantly reduce soil CO₂ emissions. We conclude that further empirical evidence assessing global change threats on the seagrass carbon sink capacity is required to aid broader uptake of seagrass into blue carbon policy frameworks. The preliminary findings from this study can be used to estimate the potential risk of CO₂ emissions from seagrass habitats under threat and guide nature-based solutions for climate change mitigation.     

Proposal for a poverty-adaptation-mitigation window within the Green Climate Fund

The stakes for alleviating poverty and avoiding unbridled climate change are inextricably linked. Climate change impacts will slow down and may even reverse trends in poverty reduction. The pathways consistent with global warming of no more than 2?°C require strategies for poverty alleviation to make allowance for the constraint of low-carbon development. Existing climate funds have failed to target poverty alleviation as a high-priority strategy for adaptation or as a component of low-carbon development. This article proposes a funding window as part of the Green Climate Fund in order to foster synergies targeting greater satisfaction of basic needs, while making allowance for adaptation and mitigation. This financial mechanism is based on indicators of the satisfaction of basic needs and could respond to the claims of the developing countries, which see alleviating poverty as the first priority in climate negotiations. It defines a country continuum, given that there are poor people everywhere; all developing countries are therefore eligible with a mechanism of this sort.

Policy relevance

The Intergovernmental Panel on Climate Change (IPCC) calls for substantial emissions reductions and adaptation strategies over the next decades to reduce the high risks of severe impacts of climate change over the 21st century. Industrialized countries and developing countries alike recognize the need to mitigate climate change and to adapt to it. But they face many challenges that lead to an ‘emissions gap’ between an emissions level consistent with the 2?°C increase limit and the voluntary pledges that they have made thus far in the climate negotiations (United Nations Environment Programme. (2014). The Emissions Gap Report 2014. A UNEP synthesis report). In this arena, many developing countries underline that their first domestic priority is the satisfaction of basic needs. In the run-up to the next climate negotiations at the 21st Conference of the Parties (COP 21) in Paris, the proposed poverty-adaptation-mitigation funding window could contribute to alleviate the conflict between development and climate goals in developing countries. In this sense, it could spur developing countries to integrate more ambitious emissions limitations pledges into their Intended Nationally Determined Contributions. This could in turn entice industrialized countries to act similarly. In the end, it could pave the way to an ambitious climate agreement in Paris at COP 21.     

Voluntary citizen participation in carbon allowance markets: the role of norm-based motivation

The results from a semi-experimental study of Swedish students’ stated willingness to purchase emission allowances for carbon dioxide are presented. Drawing heavily on recent developments in the literature on integrating norm-motivated behaviour into neoclassical consumer theory, it is assumed that individuals have a preference for maintaining a self-image as a responsible (and thus norm-compliant) person. The results indicate that students’ willingness to purchase carbon allowances is determined by both price and the presence of norms: those who feel personally responsible for contributing to reducing climate damages also appear more inclined to buy allowances. The empirical findings are consistent with the notion that a person's beliefs about others’ stated willingness to purchase carbon allowances imply improvements in their own self-image and ultimately behavioural change. This suggests that information campaigns that attempt to influence beliefs about others’ intentions could promote ‘green’ consumer behaviour in the carbon allowance market. Such (stated) behaviour also appears to be influenced by a person's awareness of the problem of climate change and their beliefs about their own ability to contribute to solving it.

Policy relevance

Although there is a concern that public goods such as reduced climate change may be under-provided in the free market, individual concern for the environment occasionally has profound impacts on consumer choice and voluntary action. This research suggests that information campaigns that attempt to influence beliefs about others’ intentions could promote ‘green’ consumer behaviour in carbon allowance markets. Publicly-provided information about the impacts of climate change and the ways in which these damages stem from individual choices could also induce this type of behaviour.     

How much information is lost by using global-mean climate metrics? an example using the transport sector

Metrics are often used to compare the climate impacts of emissions from various sources, sectors or nations. These are usually based on global-mean input, and so there is the potential that important information on smaller scales is lost. Assuming a non-linear dependence of the climate impact on local surface temperature change, we explore the loss of information about regional variability that results from using global-mean input in the specific case of heterogeneous changes in ozone, methane and aerosol concentrations resulting from emissions from road traffic, aviation and shipping. Results from equilibrium simulations with two general circulation models are used. An alternative metric for capturing the regional climate impacts is investigated. We find that the application of a metric that is first calculated locally and then averaged globally captures a more complete and informative signal of climate impact than one that uses global-mean input. The loss of information when heterogeneity is ignored is largest in the case of aviation. Further investigation of the spatial distribution of temperature change indicates that although the pattern of temperature response does not closely match the pattern of the forcing, the forcing pattern still influences the response pattern on a hemispheric scale. When the short-lived transport forcing is superimposed on present-day anthropogenic CO₂ forcing, the heterogeneity in the temperature response to CO₂ dominates. This suggests that the importance of including regional climate impacts in global metrics depends on whether small sectors are considered in isolation or as part of the overall climate change.     

Renewable and low-carbon energies as mitigation options of climate change for China

This article discusses how renewable and low-carbon energies can serve as mitigation options of climate change in China’s power sector. Our study is based on scenarios developed in PowerPlan, a bottom-up model simulating a countries’ power sector and its emissions. We first adjusted the model to China’s present-day economy and power sector. We then developed different scenarios based on story lines for possible future developments in China. We simulated China’s carbon-based electricity production system of today and possible future transitions towards a low-carbon system relying on renewable and low-carbon energies. In our analysis, we compare the business-as-usual scenarios with more sustainable energy scenarios. We found that by increasing the share of renewable and nuclear energies to different levels, between 17% and 57% of all CO₂ emissions from the power sector could be avoided by 2030 compared to the business-as-usual scenario. We also found that electricity generation costs increase when more sustainable power plants are installed. As a conclusion, China has two options: choosing for high climate change mitigation and high costs or choosing for moderate climate change mitigation and moderate costs. In case high climate change mitigation will be chosen, development assistance is likely to be needed to cover the costs.     

Low-carbon transition risks for India’s financial system

As the low-carbon transition accelerates, loans to and investments in carbon-intensive assets, firms and sectors are at risk of not generating the anticipated returns, with implications for individual financial institutions as well as financial markets more broadly. However, research on this topic has largely been focused on high- and upper-middle income economies to date. In this paper, we explore the salience of this issue in India – one of the world’s largest emitters and economies – by asking: (1) how extensive is financial-sector exposure to transition risks? And: (2) are finance professionals and financial institutions taking sufficient action to manage those transition risks? Our findings reveal that India’s financial sector is much more heavily exposed to low-carbon transition risks than standard borrowing classifications might suggest. For example, our granular assessment of individual loans and bonds finds that three-fifths of lending to the ‘mining’ sector is for oil and gas extraction, while one-fifth of ‘manufacturing’ debt is for petroleum refining and related industries. We also find that electricity production – by far the largest source of emissions – accounts for 5.2% of outstanding credit, but that only 17.5% of this lending is to pureplay renewables. Yet our survey of India’s largest financial institutions suggests that there have been limited efforts to identify, measure or manage low-carbon transition risks. Fewer than half of the 154 finance professionals surveyed were familiar with environmental issues including climate change mitigation and adaption, greenhouse gas emissions or transition risks. Only four of the ten major financial institutions surveyed collect information on ESG risks, and these firms do not systematically incorporate that data into business continuity planning, internal capital adequacy assessment processes, credit risk assessments, enterprise risk management frameworks or loan product pricing. Given extensive financial-sector exposure to low-carbon transition risks coupled with the absence of bottom-up action to manage those risks, our findings suggest that financiers, regulators and policymakers in emerging and developing economies should be acting swiftly to ensure an orderly transition to net-zero.     

All adrift: aviation,shipping, and climate change policy

All sectors face decarbonization for a 2 °C temperature increase to be avoided. Nevertheless, meaningful policy measures that address rising CO₂ from international aviation and shipping remain woefully inadequate. Treated with a similar approach within the United Nations Framework Convention on Climate Change (UNFCCC), they are often debated as if facing comparable challenges, and even influence each others’ mitigation policies. Yet their strengths and weaknesses have important distinctions. This article sheds light on these differences so that they can be built upon to improve the quality of debate and ensuing policy development. The article quantifies ‘2 °C’ pathways for these sectors, highlighting the need for mitigation measures to be urgently accelerated. It reviews recent developments, drawing attention to one example where a change in aviation mitigation policy had a direct impact on measures to cut CO₂ from shipping. Finally, the article contrasts opportunities and barriers towards mitigation. The article concludes that there is a portfolio of opportunities for short- to medium-term decarbonization for shipping, but its complexity is its greatest barrier to change. In contrast, the more simply structured aviation sector is pinning too much hope on emissions trading to deliver CO₂ cuts in line with 2 °C. Instead, the solution remains controversial and unpopular – avoiding 2 °C requires demand management.

Policy relevance

The governance arrangements around the CO₂ produced by international aviation and shipping are different from other sectors because their emissions are released in international airspace and waters. Instead, through the Kyoto Protocol, the International Civil Aviation Authority (ICAO) and the International Maritime Organization (IMO) were charged with developing policies towards mitigating their emissions. Slow progress to date, coupled with strong connections with rapidly growing economies, has led to the CO₂ from international transport growing at a higher rate than the average rate from all other sectors. This article considers this rapid growth, and the potential for future CO₂ growth in the context of avoiding a 2 °C temperature rise above pre-industrial levels. It explores similarities and differences between these two sectors, highlighting that a reliance on global market-based measures to deliver required CO₂ cuts will likely leave both at odds with the overarching climate goal.