Post-Copenhagen carbon management still a C-suite priority: the recent global conferences sent a mixed signal on the future of climate change legislation and control. But one result is clear: responding to the business issues of climate change should remain high on the priority list for corporate leaders.

• Author: Starbuck, Stephen
• Position: CLIMATE CHANGE

Since the release of the Copenhagen Accord in December, there have been a variety of opinions on what has actually been accomplished. The document is an umbrella political statement, noted by environment ministers of 194 countries brought together by the United Nations. Though it provides a global framework for national governments to declare their unilateral commitments at an international level, it is a nonbinding statement.

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Voluntary agreements to minimize global temperature increases, report on national greenhouse gas (GHG) emissions every two years and fund mitigation and adaptation actions in developing countries set the tone for future national-level policies for the period from 2010 to 2020. However, the Copenhagen conference adjourned leaving many uncertainties to be addressed when the parties reconvene in Mexico City this November.

The Copenhagen document 'lift recognizes climate change as one of the greatest challenges of our time. It stresses the need to establish a comprehensive adaptation program--actions to help countries cope with the effects of climate change--that includes international co-operation. The presence in Copenhagen of 119 heads of government is a clear indication of the level of global level of political will and commitment.

Key elements of the Copenhagen Accord include:

* Limiting dangerous global temperature change;

* Stabilizing and then reducing GHG emissions;

* Taking action to mitigate climate change in developing countries;

* Establishing national GHG inventory reports;

* Tackling forestry-related GHG emissions;

* Investing in climate mitigation and adaptation; and

* Launching a technology development.

Yet, certain policy uncertainties remain. The accord is a voluntary agreement--not a legally binding treaty; there is no deadline to negotiate a new treaty. The Kyoto Protocol global carbon markets are not reformed and the international action on aviation and maritime emissions has been postponed.

Business leaders have been consistent in their messages to governments and other influential parties that they require more certainty about the future shape and direction of global and national regulatory frameworks for climate change. Undoubtedly, climate change has been driven to the top of the corporate agenda and has many implications for business:

* 2020 remains the current target for GHG emissions reductions. Business should be expecting more national and regional legislation with a focus on 2020 targets.

* Measurement reporting and verification should receive more focus. Measurement reporting and verification obligations may be fueled by local, national and regional agreements and legislation or by stakeholders, such as investors and...