Business and climate change: key challenges in the face of policy uncertainty and economic recession

Climate change is seen as the most pressing environmental problem of our time by many
companies, policymakers and other stakeholders. It is currently also at the forefront of
attention in view of attempts to conclude a successor to the Kyoto Protocol that expires in
2012. In bail-out plans and policies to address the economic recession and credit crisis,
climate aspects have figured prominently as well. This article examines recent policy and
economic developments and their relevance for business and climate change, considering
the implications of the economic slowdown, declining oil prices and bail-outs. Dilemmas in
the economy-climate-policy nexus in the current setting are also placed in the broader
context related to innovating for climate change, to highlight some of the competitive,
technological and market issues that need to be taken into account to break the present
dead-lock that hinder radical moves to a low-carbon economy.
Keywords: Climate change; Bail-out; Economic recession; Credit crisis; Innovation