Climate change and financial regulation : challenges for the financial sector post the Global Financial Crisis

Regulation has played a significant role in shaping the financial services sector in Australia over the past few decades. Regulatory changes have included the establishment of the Australian Prudential Regulation Authority (APRA), floating the Australian dollar, allowing foreign financial institutions to operate domestically, the introduction of the superannuation guarantee charge, and the removal of interest rate controls. As the economy emerges from the worst financial crisis since the great depression, a new force of change that is recognised as one of the most significant sources of risk and opportunity facing the business community in the foreseeable future is that of climate change. Climate change is expected to be a significant change agent in the financial services sector as extreme weather patterns, sea level rises, and atmospheric changes impact on asset values (both investment and lending), project finance, and risk products. The financial services industry will be particularly affected by these developments, both as a provider of financial products (capital, credit, investment, advice, and insurance), and also through its powerful influence on the economy in terms of capital allocation. In addition, industry constituents will be heavily impacted by government regulation in this area (reporting, emissions trading and environmental policies), with respect to their own business practices and also those of their clients. This study reports the results of interviews conducted with senior members of the finance sector working in the sustainability area to gauge their perceptions of the challenges facing the sector with respect to climate change. Our results confirm that that regulatory intervention will be critical to climate change response gaining traction and momentum. In particular, regulatory certainty will promote engagement, particularly in relation to the Carbon Pollution Reduction Scheme (CPRS), with other developments needed in terms of information disclosure, performance and remuneration, and incentive programs. Accordingly, the significant potential risks and opportunities that climate change presents to the sector, and the broader economy, will in part be managed/realised only if a swift and significant regulatory response is achieved.

Climate change and Indian forests

An assessment of the impact of projected climate change on forest ecosystems in India based on climate projections of the Regional Climate Model of the Hadley Centre (HadRM3) and the global dynamic vegetation model IBIS for A1B scenario is conducted for short-term (2021-2050) and long-term (2071-2100) periods. Based on the dynamic global vegetation modelling, vulnerable forested regions of India have been identified to assist in planning adaptation interventions. The assessment of climate impacts showed that at the national level, about 45% of the forested grids is projected to undergo change. Vulnerability assessment showed that such vulnerable forested grids are spread across India. However, their concentration is higher in the upper Himalayan stretches, parts of Central India, northern Western Ghats and the Eastern Ghats. In contrast, the northeastern forests, southern Western Ghats and the forested regions of eastern India are estimated to be the least vulnerable. Low tree density, low biodiversity status as well as higher levels of fragmentation, in addition to climate change, contribute to the vulnerability of these forests. The mountainous forests (sub-alpine and alpine forest, the Himalayan dry temperate forest and the Himalayan moist temperate forest) are susceptible to the adverse effects of climate change. This is because climate change is predicted to be larger for regions that have greater elevations.

"Global Change" und das Meer als Nahrungsquelle

The potential importance of marine produetion as a protein ressource for a growing human population can hardly be overestimated. Climatic changes in the marine environment may affect marine production in a significant way. Increasing levels of UV-B may decrease primary production and thus diminish the food base for harvestable marine ressources. Direct effects on early stages of fishes may occur. Temperature changes can lead to additional mortality in the early phase of life histories of fishes. In spite of the potentially negative scenario, actual effects of global change on the ressources have not been detected so far. The marine organisms dispose of a significant level of pre-adaptation to changes of environmental factors both on a seasonal and an interannual scale. Effects on marine life may therefore be less dramatic than those on terrestrial systems, which are more directly linked with the exponentially growing human population.

Volcanic activity and global change: probable short-term and possible long-term linkages

Article reviews annual to decadal climate response to volcanism; long-term climatic response to volcanism; and recent results from ocean drilling in the North Pacific.

Monitoring and simulation of water, heat,and CO2 fluxes in terrestrial ecosystems based on the APEIS-FLUX system

The Integrated Environmental Monitoring (IEM) project, part of the Asia-Pacific Environmental Innovation Strategy (APEIS) project, developed an integrated environmental monitoring system that can be used to detect, monitor, and assess environmental disasters, degradation, and their impacts in the Asia-Pacific region. The system primarily employs data from the moderate resolution imaging spectrometer (MODIS) sensor on the Earth Observation System- (EOS-) Terra/Aqua satellite,as well as those from ground observations at five sites in different ecological systems in China. From the preliminary data analysis on both annual and daily variations of water, heat and CO2 fluxes, we can confirm that this system basically has been working well. The results show that both latent flux and CO2 flux are much greater in the crop field than those in the grassland and the saline desert, whereas the sensible heat flux shows the opposite trend. Different data products from MODIS have very different correspondence, e.g. MODIS-derived land surface temperature has a close correlation with measured ones, but LAI and NPP are quite different from ground measurements, which suggests that the algorithms used to process MODIS data need to be revised by using the local dataset. We are now using the APEIS-FLUX data to develop an integrated model, which can simulate the regional water,heat, and carbon fluxes. Finally, we are expected to use this model to develop more precise high-order MODIS products in Asia-Pacific region.

Modeling gross primary production of alpine ecosystems in the Tibetan Plateau using MODIS images and climate data

The eddy covariance technique provides measurements of net ecosystem exchange (NEE) Of CO2 between the atmosphere and terrestrial ecosystems, which is widely used to estimate ecosystem respiration and gross primary production (GPP) at a number Of CO2 eddy flux tower sites. In this paper, canopy-level maximum light use efficiency, a key parameter in the satellite-based Vegetation Photosynthesis Model (VPM), was estimated by using the observed CO2 flux data and photosynthetically active radiation (PAR) data from eddy flux tower sites in an alpine swamp ecosystem, an alpine shrub ecosystem and an alpine meadow ecosystem in Qinghai-Tibetan Plateau, China. The VPM model uses two improved vegetation indices (Enhanced Vegetation Index (EVI), Land Surface Water Index (LSWI)) derived from the Moderate Resolution Imaging Spectral radiometer (MODIS) data and climate data at the flux tower sites, and estimated the seasonal dynamics of GPP of the three alpine grassland ecosystems in Qinghai-Tibetan Plateau. The seasonal dynamics of GPP predicted by the VPM model agreed well with estimated GPP from eddy flux towers. These results demonstrated the potential of the satellite-driven VPM model for scaling-up GPP of alpine grassland ecosystems, a key component for the study of the carbon cycle at regional and global scales. (c) 2006 Elsevier Inc. All rights reserved.

What we need to know before speaking on Climate Change and Global Warming

Workshop on Energy Greenhouse Gases & Environment, Porto, 2008

Recent Arctic Climate Change and Its Remote Forcing of Northwest Atlantic Shelf Ecosystems

During recent decades, historically unprecedented changes have been observed in the Arctic as climate warming has increased precipitation, river discharge, and glacial as well as sea-ice melting. Additionally, shifts in the Arctic's atmospheric pressure field have altered surface winds, ocean circulation, and freshwater storage in the Beaufort Gyre. These processes have resulted in variable patterns of freshwater export from the Arctic Ocean, including the emergence of great salinity anomalies propagating throughout the North Atlantic. Here, we link these variable patterns of freshwater export from the Arctic Ocean to the regime shifts observed in Northwest Atlantic shelf ecosystems. Specifically, we hypothesize that the corresponding salinity anomalies, both negative and positive, alter the timing and extent of water-column stratification, thereby impacting the production and seasonal cycles of phytoplankton, zooplankton, and higher-trophic-level consumers. Should this hypothesis hold up to critical evaluation, it has the potential to fundamentally alter our current understanding of the processes forcing the dynamics of Northwest Atlantic shelf ecosystems.

Protected area networks and savannah bird biodiversity in the face of climate change and land degradation

The extent to which climate change might diminish the efficacy of protected areas is one of the most pressing conservation questions. Many projections suggest that climate-driven species distribution shifts will leave protected areas impoverished and species inadequately protected while other evidence suggests that intact ecosystems within protected areas will be resilient to change. Here, we tackle this problem empirically. We show how recent changes in distribution of 139 Tanzanian savannah bird species are linked to climate change, protected area status and land degradation. We provide the first evidence of climate-driven range shifts for an African bird community. Our results suggest that the continued maintenance of existing protected areas is an appropriate conservation response to the challenge of climate and environmental change.

Justifying accounting change through global discourses and legitimation strategies. The case of the UK central government.

Accounting has been viewed, especially through the lens of the recent managerial reforms, as a neutral technology that, in the hands of rational managers, can support effective and efficient decision making. However, the introduction of new accounting practices can be framed in a variety of ways, from value-neutral procedures to ideologically-charged instruments. Focusing on financial accounting, budgeting and performance management changes in the UK central government, and through extensive textual analysis and interviews in three government departments, this paper investigates: how accounting changes are discussed and introduced at the political level through the use of global discourses; and what strategies organisational actors subsequently use to talk about and legitimate such discourses at different organisational levels. The results shows that in political discussions there is a consistency between the discourses (largely NPM) and the accounting-related changes that took place. The research suggests that a cocktail of legitimation strategies was used by organisational actors to construct a sense of the changes, with authorisation, often in combination with, at the very least, rationalisation strategies most widely utilised. While previous literature posits that different actors tend to use the same rhetorical sequences during periods of change, this study highlights differences at different organisational levels.

Challenging Indifference to Extreme Poverty: Considering Southern Perspectives on Global Citizenship and Change

Canadian universities are expanding opportunities for students to travel, study, volunteer and work abroad for academic credit, especially in regions of the global south often called “developing countries.” It is widely assumed that exposure to extreme poverty through shortterm placements overseas will make young Canadians and other Northerners into “global citizens” who would by definition be incapable of indifference to the lack of freedom that accompanies extreme poverty. This paper asks whether it is warranted for Northerners to attain a claim to global citizenship via this mechanism, especially in light of the burdens falling upon Southern organizations that host young people from Canada and elsewhere.

Climate change and hunger as the challenges in the global food system

In the last decades, there has been a growing tendency towards international trade and globalisation, particularly leading to a significant increase in flows of agricultural commodities worldwide. From a macroeconomic perspective, the commodity projections are more optimistic than the previous years and the long run tendency shows an increasing demand for feedstock. However, the strong shifts of shocks and fluctuations (in terms of prices and volumes) are a concern to global food security, with the number of hungry people rising to nearly one billion. Agriculture is a main user of natural resources, and it has a strong link with rural societies and the environment. Forecasted impacts from climate change, limited productive endorsements and emerging rivals on crop production, such bio-energy, aggravate the panorama on food scarcity. In this context, it is a great challenge on farming and food systems to reduce global hunger and produce in sustainable ways adequate supplies for food, feed, and non-food uses. The main objective of this work is to question the sustainability of food and agriculture systems. It is particularly interesting to know its role and if it will be able to respond to a growing population with increasing food demand in a world where pressure on land, water and other natural resources are already evident, and, moreover, climate change will also condition and impact the outcome. Furthermore, a deeper focus will be set on developing countries, which are expected to emerge and take a leading role in the international arena. This short paper is structured as follows: Section I, “Introduction”, describes the social situation regarding hunger, Section II, “Global Context”, attempts to summarise the current scenario in the international trading scheme and present the emerging rivals for primary resources, and in Section III, “Climate Change”, presents an overview of possible changes in the sector and future perspectives in the field. Finally, in Section IV, “Conclusion”, the main conclusions are presented.