Durban makes adaptation a priority for business

The Durban Platform agreement on climate change has been welcomed, if only because expectations were so low.  Of course, it is just an agreement to agree something by 2015, and to do whatever is agreed by 2020.  But is this just a bit of political positioning, or does it hold important messages for businesses in the UK?

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Durban is an important “heads up” for businesses all over the world.  Some countries not previously committed to emissions reductions under Kyoto have now said they will definitely agree something in the next few years – including China, the world’sbiggest emitter.  For energy-intensive businesses competing head on with companies in developing countries, this may be good news.   For those firms in countries that will now have to commit, it may sound worrying.  However reducing energy intensity is good business – and because the change is some way off, those companies have an excellent opportunity to invest thoughtfully now, save money, and be ready for 2020.

In Europe, emissions are already regulated, and governments are using grants, taxes, and other powers to encourage industries to become more efficient.  Does this mean that there will be no particular change for firms in the UK and on the continent?

The biggest news for companies here (and big-ish news for firms everywhere) is that global emissions are likely to keep rising for some time.  A view from a growing number of experts suggests that this means we might face a narrower set of options by 2020: either to cut emissions much more dramatically than if we started now, and at enormous cost, or to risk temperature increases of greater than 2C.

On the assumption that the world will not opt for dramatic, extremely expensive emissions cuts, firms face an imperative to work now on adaptation, even though the exact impacts of 2C+ warming, and their timings, are still uncertain.  There are a number of tactics companies will be pursuing to mitigate the risk of more frequent extreme weather events and their impacts.  For example, some will relocate facilities away from areas at risk of floods and hurricanes.  Others may invest further in back-up solutions to deal with everything from power failures, to transport shut-downs, to extensive supply chain disruptions.

If your firm has an emergency planning process, now is the time to make sure it covers all the predicted impacts of climate change for your region, with an understanding of the potential severity and likely timescales involved.  If you have no such process, it is more urgent than ever that you get started.  Adaptation to an environment of growing risks is now a clear priority for business.