Business Opportunities and Risks to Climate Change Mitigation
This article aims to address the potential implications of business opportunities and risks associated with climate
change mitigation. Mitigation efforts such as low carbon emission target, eco-taxes, laws and regulation, tax credits and
technology-specific incentives have potential implications on major business areas including its reputations, legal
responsibilities, regulatory obligations, financial reporting, operations and supply chain. Business opportunities due to
climate change mitigation offer carbon credits and emissions trading, rapid growth of renewable and clean energy markets,
new investment opportunities, energy efficiency, new market opportunities, wealth and capital formation, corporate social
responsibility, reputation and brand value. For instance, markets for low carbon energy products are likely to be worth at
least US$500 billion per year by 2050 and perhaps much more. Conversely, the risks imposed by mitigation efforts are price
volatility, increased energy and insurance costs, legislations and regulation, reputational risk (public pressure), credit risk
(pressure on credit rating), and financial risk (investor pressure). However, by addressing the climate change mitigation
efforts, there is a huge potential for significant new opportunities across a wide range of businesses, industries and services.
Keywords - Business opportunities, Business risks, Climate change, Low-carbon economy.