Keywords: climate change, greenhouse gas reduction, gas emissions, GHG, low-carbon environments, global warming, government regulation, conferences, UN, United Nations, Copenhagen, Denmark, COP15, targets, deadlines, growth stimulation, job creation, employment opportunities, economic benefits, regulatory issues, business governance, CEOs, chief executive officers, top management, corporate oversight, compliance monitoring, compliance assessment, compliance management, transition periods, carbon costs, cost classification, cost measurement, financial sustainability, financial reporting, sustainable development, financial disclosure, carbon citizenship, responsible citizenship, environment, interdisciplinary approaches
Regulatory challenges in the move to a low-carbon environment
An outcome of the international climate conference in Copenhagen (COP15, 2009) was that a number of governments have undertaken to reduce their nations' greenhouse gas (GHG) emissions and some have provided targets and deadlines for the achievement of their stated goals. While the transition to a low-carbon environment has the potential to stimulate growth, create jobs and opportunities, and to bring benefits to the economy, there are many challenges in the process. This is an exploratory paper aimed at identifying the major regulatory and governance issues associated with the move to a low-carbon environment. In terms of business governance, CEOs and other executives responsible for corporate oversight will need to monitor, assess, and manage compliance with climate change and carbon-related regulation. In the transition period government regulation encouraging appropriate carbon costs classification and measurement, financial sustainability reporting and disclosure, and responsible carbon citizenship are expected to be predominant.