Copenhagen Accord: Outcomes, Next Steps, and Business Implications

Abstract

Although the United Nations Climate Change Conference, held recently in Copenhagen, fell short of expectations by failing to achieve a legally binding agreement to fill the gap when the Kyoto Protocol expires in 2012, there were some positive outcomes. A negotiating gridlock limited the resulting Copenhagen Accord to a nonlegally binding treaty drafted in part by the United States. The Accord was not adopted.

This article discusses key elements of the Accord, identifies those countries that have committed to greenhouse gas emission reduction targets, and offers insights into the positive outcomes, shortcomings, and business implications of the Accord.

We would also like to thank our intern Gideon Grossman for the help he provided in completing this article.

Notes

Since the UNFCCC entered into force, the parties have been meeting annually in Conferences of the Parties (COP) to assess progress in dealing with climate change and, beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions.

The 1997 Kyoto Protocol, an international agreement that is part of the UNFCCC, sets binding targets for reducing GHG emissions among thirty-seven industrialized countries and the European Union (EU). The Protocol was entered into force in February 2005. The United States is not a signatory to the Kyoto Protocol. The treaty was never submitted to the Senate for consideration, as it was evident that there were not sufficient votes to ratify it. There were concerns at the time that achieving the type of GHG reductions called for by the Protocol would have an adverse impact on the U.S. economy. The lack of specific actions required of developing nations emerging as major GHG emitters, like China and India, was viewed as problematic.

BCSE at COP-15: Final Report on Copenhagen.

The 2007 United Nations Climate Change Conference culminated in the adoption of the Bali Road Map, which consisted of a number of forward-looking decisions that represent various tracks essential to reaching a secure climate future. The Bali Road Map included the Bali Action Plan, which charted the course for a new negotiating process designed to finalize a binding agreement by 2009 in Copenhagen.

Information reported from the U.S. Climate Action Network (www.usclimatenetwork.org).

The Business Council for Sustainable Energy is an organization dedicated to implementing market-based approaches to reducing pollution and providing a diverse, secure mix of energy resources.

Verdantix. Business Implications of the Copenhagen Accord, December 2009.

Verdantix. Business Implications of the Copenhagen Accord, December 2009.

Verdantix. Business Implications of the Copenhagen Accord, December 2009.

Reeva I. Schiffman Kymer is the senior managing associate at First Environment, a full service strategic environmental management and engineering firm, with expertise in sustainability, greenhouse gas management, environmental, health and safety regulatory compliance and litigation support, and management system design and implementation. Lauren M. Sandler is a senior environmental specialist at First Environment.