Environmental policy

Description

Environmental policy stimulates consumers' mindsets and consequently brings out the changes in demands for advertisements.

The total CO2 emission amount in this planet was estimated to be about 26.7 billion tons in 2005 which is higher by 16% than that in 2000. The growth rate was worse than what IPCC, Intergovernmental Panel on Climate Change, had considered as the worst scenario. (JACSES 2009)

In 1998, more than 84 countries ratified Kyoto Protocol which targets 5.2% emission reduction from 1990 level in developed countries as a whole by 2012. Each country set its own target: 8% reduction for 15 countries in EU, 6% for Canada and Japan, and 0% for Russia. The agreement was the inception of worldwide governmental activity against global warming.

Governments in EU region introduced the cap and trade system which sets the maximum amount of CO2 each target corporation can emit and allows target corporations to offset the excess emissions with carbon credits. The system made corporations realize that installing energy efficient facilities would not only reduce electricity cost but also enable them to exempt from paying for offset credits. Strong subsidy policy is another example to change their corporate strategy. In some developed countries, especially Germany, the US, the UK, and Japan, the government subsidizes consumers who purchase eco-friendly products such as low fuel consumption automobiles and low energy consumption electric devices. The subsidy policy provides a supportive push for consumers who recognize the economical benefit of the eco-friendly products but hesitate to purchase them due to the relatively high initial costs. In fact, after the subsidy policy was in effect, about 50,000 of PRIUS, TOYOTA’s hybrid car, were sold in two months. (IT Media 2009) Corporations have recognized that producing eco-friendly products would be profitable.

In addition, being baked up by the Kyoto Protocol, Emission Trading Scheme was considered and put in practice. The ETS enables companies that exceed individual CO2 emissions targets to buy allowances from 'greener' ones to help reach the EU's targets under the Kyoto Protocol. However, pollution credits were grossly overallocated by several countries during the initial implementation phase, forcing down carbon prices and undermining the scheme's credibility, which has prompted the EU to consider toughening up the system.

Enablers

• International protocol such as COP15
• Increase in risks of climate change
• Instability of the oil price
• Public interests in sustainability

Inhibitor

• Economic downturn
• Low oil price
• Passive attitude of developing countries

Paradigms

• Expansion of green consumers and green corporations
• Green technology development
• Prevalence of green marketing

Experts

• Governments: Ministry of the Environment
• NPOs in sustainable fields
• National institutions in sustainable fields

Timing

• COP15

COP15 is the international conference on the climate change held in December 2009 in Copenhagen. In the conference, the target reduction amount for each country during the post Kyoto period (2013-2020) will be decided. Additionally, new international frameworks will also be discussed. Such new targets and frameworks will back up the development of new environmental policies in each country.