A Corporate Perspective: the Significance of the Kyoto Mechanisms
description
Transcript of A Corporate Perspective: the Significance of the Kyoto Mechanisms
![Page 1: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/1.jpg)
A Corporate Perspective: the Significance of the Kyoto Mechanisms
Tom Jacob
DuPont
October 29, 2002
UN Framework Convention on Climate Change
![Page 2: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/2.jpg)
Science-based solutions... Food & Nutrition Health Care Apparel Home & Construction Electronics Transportation
From a global company Operations in 70 countries
![Page 3: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/3.jpg)
A company concerned about climate change– Committed in ‘91 to reducing GHG’s– Reduced our global emissions by over
50% during decade of ‘90’s– New goals for coming decade
Attain 65% reduction from ‘90 Maintain flat energy consumption Source 10% of energy from renewables
![Page 4: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/4.jpg)
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Low
![Page 5: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/5.jpg)
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-Issue
Low
![Page 6: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/6.jpg)
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-Issue
Environmental Issue
Low
![Page 7: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/7.jpg)
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-IssueEconomic Issue
Environmental Issue
Low
![Page 8: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/8.jpg)
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-IssueEconomic Issue
Environmental Issue
Low
DUPONT
![Page 9: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/9.jpg)
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-IssueEconomic Issue
Environmental Issue
Significant ComplexChallenge
Low
![Page 10: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/10.jpg)
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
![Page 11: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/11.jpg)
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
“Business as usual”
Related Emission Pathways
Total current emissions
![Page 12: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/12.jpg)
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
Developing country
emissions
“Business as usual”
Related Emission Pathways
Total current emissions
![Page 13: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/13.jpg)
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
Developing country
emissions
“Business as usual”
Related Emission Pathways
Total current emissions
Kyoto Protocol
![Page 14: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/14.jpg)
The Longer-Term Challenge
Continued emissions in developed nations Growing Population --> Growing
Emissions Long-term Need
– Reduce global emissions, while strengthening global economy
Increasing pressure on emissions!!
![Page 15: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/15.jpg)
Longer-Term Solution Technology evolution/revolution
– Accelerate technological advancement Encourage technological innovation
Mobilize globally– Global economic vitality --> diffusion of technology
Economic growth in more climate-friendly way
Key Notion: Cost-Effective Use of Capital
![Page 16: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/16.jpg)
Markets & Flexibility
Market-stimulated investment ---> Global emissions growth– Must have global system encouraging innovation and
cost-effective climate action Workable, integrated market mechanisms Incentive for FDI as well as climate- specific
investment
Must develop, identify and act on least-cost opportunities to minimize impact of that growth
![Page 17: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/17.jpg)
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
![Page 18: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/18.jpg)
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
****
++++
++++++
********
![Page 19: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/19.jpg)
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
****
++++
++++++
********
Priority For Investment
![Page 20: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/20.jpg)
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
You accomplish 80%of the environmental benefit with the first 20% of costs.
![Page 21: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/21.jpg)
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
High Cost/Low Return
![Page 22: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/22.jpg)
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
High Cost/Low Return
Low Cost/High Return
![Page 23: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/23.jpg)
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
![Page 24: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/24.jpg)
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
Trading is the key!
![Page 25: A Corporate Perspective: the Significance of the Kyoto Mechanisms](https://reader035.fdocuments.in/reader035/viewer/2022070407/56814354550346895dafd174/html5/thumbnails/25.jpg)
Bye, Now...