Welcome to the InfoSci Platform
Carbon as an Emerging Tool for Risk Management

Carbon as an Emerging Tool for Risk Management

Tenke A. Zoltáni
Copyright: © 2013 |Volume: 4 |Issue: 4 |Pages: 19
ISSN: 1947-9573|EISSN: 1947-9581|EISBN13: 9781466635807|DOI: 10.4018/ijal.2013100104
Cite Article Cite Article

MLA

Zoltáni, Tenke A. "Carbon as an Emerging Tool for Risk Management." IJAL vol.4, no.4 2013: pp.51-69. http://doi.org/10.4018/ijal.2013100104

APA

Zoltáni, T. A. (2013). Carbon as an Emerging Tool for Risk Management. International Journal of Applied Logistics (IJAL), 4(4), 51-69. http://doi.org/10.4018/ijal.2013100104

Chicago

Zoltáni, Tenke A. "Carbon as an Emerging Tool for Risk Management," International Journal of Applied Logistics (IJAL) 4, no.4: 51-69. http://doi.org/10.4018/ijal.2013100104

Export Reference

Mendeley
Favorite Full-Issue Download

Abstract

Since 2005, when the European Union Emissions Trading Scheme (EU ETS) launched, green adoption in business and industry has been marred by fraudulent carbon credits, VAT swindlers and carbon cowboys, inefficiencies of a nascent market, and not least of all by legislative uncertainty. The disrepute afforded by these examples hindered low carbon growth and deterred emerging business models from adopting more carbon friendly practices. But, as this article argues, the shift toward liberal environmentalism has yielded a new generation of businesses seeking to incorporate carbon assets, emissions trading, and sustainability strategies across the value chain. Central to this shift is the notion of carbon as a tool for risk management in businesses, which occurred through the instrumentalisation of CO2 into a tradable asset. By utilising carbon as a financial instrument, businesses are able to manage project risk, market risk, and reputational risk more effectively. This article demonstrates this argument through industry examples and provides practical advice for businesses today.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.