globalEDGE Blog - By Tag: environmental-regulations

Almost every large company in the world has used fossil fuels at some point, whether at a federal level or a state level. Restrictions are being placed on how certain corporations handle their carbon footprint. While some companies have pledged toward a more carbon-neutral future, reaching those sustainability goals takes time, effort, and money. This has led to a new industry solely based on carbon dioxide extraction from the atmosphere. The carbon capture and storage industry is on the rise, with Fortune 500 companies investing millions into reducing their carbon credit and billionaires launching their start-ups in the sector.

With many of the day-to-day costs worldwide continuing to surge, new measures are being taken to help lessen the amount of money spent by the average citizen. On Wednesday, March 30th, President Biden of the United States announced his pending plan to spend $3.16 billion on adding new components to hundreds of thousands of homes in low-income areas to make them more energy-efficient. This new plan was possible because of Biden’s $1.2 trillion bipartisan infrastructure bill signed into law in 2021. Around 450,000 new homes will be retrofitted because of the newly acquired budget. This amount of homes is a major increase over the previous amount, around 38,000. The new additions and renovations will involve electrification, heat pumps, LED lighting, insulation, and sealing up leaks. These upgrades will help make homes more energy-efficient and help cut down on monthly energy bills and gas emissions.

Though COVID-19 is far from behind us, businesses and international trade are coming to life again after an unprecedented slowdown in 2020. While much of the world will be relieved by the global economy’s slow progression toward pre-pandemic levels, the recovery will inevitably bring with it some of our pre-pandemic problems. Pollution and waste represent a particular area of concern. No business comes without pollution, and in spring 2021, one facet of pollution is causing notable distress in the international business world: recyclable plastics.

As Inauguration Day nears in the U.S., talk of the Keystone XL Oil Project is on the rise. President-elect Joe Biden has been rumored to revoke the permit for the pipeline, reversing the decision made by President Trump and the Supreme Court in 2019 to approve the pipeline and grant the project a permit.

Since the start of the COVID-19 pandemic at the beginning of 2020, consumption levels and prices of petroleum and other fossil fuels have dramatically decreased. With many people working from home, and not traveling for the holidays and vacations, almost every corner of the world has seen a dramatic decrease in oil demand and consumption, but will this be the future for fossil fuels?

As the coronavirus sweeps across our globe, leaving millions indoors, we are beginning to see a positive change in the environment.  China is striving to halt the spread of COVID-19, fewer cars are driving, hardly any factories are running, and, in turn, skies are clearing up. China is known for its heavy smog that drapes over its major cities. Marshall Burke, an assistant professor at Stanford's Department of Earth System Science, said the better air quality could have saved between 50,000 and 75,000 people from dying prematurely: "The reductions in air pollution in China caused by this economic disruption likely saved twenty times more lives in China than have currently been lost due to infection with the virus in that country."

The Paris Agreement focusing on the reduction of emissions and overall achievement of climate neutrality has initiated efforts to reduce carbon emissions throughout the aviation industry. Airlines are one of the major emitters of carbon dioxide, and air travel is forecast to double by 2030. However, aviation had not been included in the agreement until now. 

On Wednesday, United States President Barack Obama, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto will meet in Ottawa for the annual North American Leaders' Summit. The meeting, commonly referred to as the Three Amigos Summit, has gathered almost every year since 2005 to discuss strategic cooperation and important economic issues. This year's meeting in particular will prove to be of high significance. The primary objective of the 2016 Summit is to develop clean power plans for each country in the continued combat against climate change. However, recent political developments may cast a shadow over this year's talks.

Within the European Union (EU), Poland stands as the union's coal-producing giant. Although the country suffered declining production rates during the global financial crisis, Poland's coal-mining sector has shown signs of recovery. More than 88 percent of Poland's electrical needs come from coal, and the mines at Belchatow are more than eight-and-a-half miles long, two miles wide, and have been measured to be the largest carbon emitter in Europe. Poland's coal industry produces 77 million tons of coal per year, making it the world's 10th largest coal producer. Due to the importance of Poland's coal mining industry, the Polish government has been increasingly active in blocking aggressive regulations by the EU to limit climate change.

It is well known that areas in Asia, specifically Hong Kong and Beijing, are reputable for their dangerous air pollution and constant smog. In response, Hong Kong has begun to implement restrictions for the transportation industry regarding fuel and emissions, while even offering up to 50% savings on port fees for those vessels switching to fuel that doesn’t contain sulfur. However, these incentives aren’t enough to make the switch for some large container-shipping vessels, because it is simply too expensive to switch from the dirtier oil. When transportation companies refuse to use clean fuel, it gives them a competitive advantage that energy-conscious companies won’t tolerate any longer.

The European Commission has accused several airlines of not following a new European law that requires them to account for their greenhouse gas emissions. Non-compliance could eventually lead to these airlines being banned from European airports. While this is not seen as very probable, it could have dire effects on world travel, the European airline market, and the global economy.

Starting July 1, 2012, the biggest polluters in Australia will have to pay a pollution tax. The tax, AD 23 (USD 25) per ton will be charged to companies that produce at least 25,000 tons of carbon dioxide per year.

In order to see if a company is viable as a going concern, environmental costs are vital to know for the long-run. The benefits to preserving the environment in terms of dollars may be surprising, but it’s not to many business leaders these days. A private sector solution may be the best solution on a global scale. Just last week, Puma became the world’s first major corporation to report the details of the cost of the company’s impact on the environment. They said the costs of the carbon emission and the water it used in 2010 totaled $134.3 million. The costs not only included the company, but all of its suppliers as well. The next step for the company is to measure their cost of waste and land-use change. Ecosystems are vital to the performance of most companies, and integrating the true costs of extracting these services could significantly impact bottom lines in the future.