The Crucial Role of Regulatory Frameworks in the Fight Against Carbon Emissions
During the Green Economy, Responsible Finance, and Sustainable Development conference held on October 24-25 at the UTICA headquarters, a panel discussion highlighted the crucial importance of regulatory frameworks in the fight against carbon emissions.
According to Karim Kharrat, CEO of Be Wireless, regulation must play a central role in achieving the goals set by COP 21 and the Paris Agreements.
Kharrat began by recalling that carbon consumption has exploded over the centuries: in 1850, it was 0.8 tons per person per year, while in 2020, it reached 6.6 tons, an impressive increase linked to demographic growth.
Kharrat emphasized that the issue of sustainability is not new. Since 1850, numerous debates have taken place, but concrete actions have not followed. Today, in the face of social injustices, it is becoming increasingly evident that a sustainable economic model cannot be imposed without a solid foundation. He called for immediate action to integrate sustainability into business management.
The engagement of companies in this transition relies on several pillars, according to Kharrat. The first is reputational: investing in sustainable practices not only improves a company's image but can also translate into an increase in its revenue. The second pillar is the regulatory framework, perceived as both a constraint and a facilitator. The implementation of carbon taxes and other incentive measures is essential to encourage companies to reduce their emissions, although questions of equity arise, as not all companies are responsible for the same level of pollution.
To strengthen company engagement, Kharrat proposed integrating externalities related to pollution into their financial statements. This approach would enable them to better measure the environmental impact of their activities.
On a global scale, Kharrat stressed the need for companies to anticipate future regulations, such as carbon taxation.
