Climate Change and How It Can Affect Your Business

by Maisie

Climate change is not only about environmental problems. It has a relationship with everything we do.

The changing climate brings many challenges to businesses. Many businesses and establishments are closing because of the rising global temperature. If not addressed, climate change will continue to have a more significant effect on our society.

The government and company initiatives like Utility Bidder are taking steps to help mitigate the effects of climate change in the world.

What is Climate Change?

According to the United Nations, climate change is the long-term shifts in temperature and weather patterns. The change can be natural, through the solar cycle, or human activities.

Climate change is also associated with changes in the environmental conditions of our world. Global warming, greenhouse gases, and rising emissions cause climate change. Humans are the main contributors to these changes in the climate.

The following are human activities that affect climate change:

Burning Coal, Oil, Gas, and Fossil Fuels

Burning coal, oil, gas, and fossil fuels are for meeting the world’s energy needs. It also drives the climate change crisis that the world is facing today. The combustion of coals, oils, gases, and fossil fuels adds significant carbon emissions. These emissions, when trapped in the atmosphere, contribute to climate change.

Cutting Trees and Deforestation

Trees turn carbon dioxide into oxygen. Cutting trees through deforestation adds carbon dioxide emissions to the air. According to climate scientists, carbon dioxide emission from deforestation contributes to less than ten percent of the world’s global warming pollution.

Farming Livestock

Raising livestock like cows, chickens, and pigs brings greenhouse gas emissions. Greenhouse gas emission is detrimental to the environment. As greenhouse emissions rise, the temperature of the earth also rises.

Producing Fertilizers Containing Nitrogen

Producing nitrogen-based fertilizers increases greenhouse gas emissions. Nitrogen-based fertilizers are more potent than carbon dioxide. It has a more profound effect on shaping climate change.

How can climate change affect your business?

Climate change has a direct effect on your business. Here is a list of how climate change can affect your business:

Extreme and More Variable Weather

Severe weather conditions disrupt the communications channels needed for business operations. The weather changes also result in higher operational costs affecting the business income.

More Flooding Events

Flooding destroys houses, establishments, and business premises. More flooding events affect the business as it comes with the costs of fixing and repairing the damage.

High Prices For Goods and Services

Different businesses are still affected by climate change, even if not in the energy industry. The energy regulations will affect the prices of goods and services. The policies make businesses operate in tight and harsher conditions.

Disruption or Collapse In The Supply Chain

Climate change can disrupt the business supply and distribution. Climate change causes shortages in different industries. Additionally, climate change intensifies the rise of seawater. The rise disrupts highways, ports, railways, and other transportation needed for the supply chain.

Water Restrictions

Water is an essential resource needed for a business to run. Due to climate change, water restrictions will be widespread disrupting business operations.

Mitigating Measures From The Government

Due to climate change, the government will do everything to mitigate its effects. Government imposes strategies to combat and penalize businesses for damages.

Government imposes taxes on energy business use and encourages sustainability among businesses.

What are initiatives that can help mitigate the effects of climate change?

The government and different businesses are taking action to mitigate the effect of climate change on the world. Initiatives like the climate change levy structures to lower the energy consumption. This levy cuts the carbon emissions and energy usage.

Climate Change Levy

A climate change levy is a government initiative to combat the climate crisis. It is an environmental tax imposed on the energy businesses use.

All who use business energy pay this environmental tax, excluding:

  • less than 1,000 kWh per month users
  • non-businesses or domestic consumers
  • charities

Putting A Price On Carbon

Policies like taxing carbon emissions will help mitigate the effects of climate change. Implementing this carbon tax will encourage low-carbon growth. Lesser carbon will lower greenhouse gas emissions.

More businesses are putting a price on carbon emissions with global participation. The United Nations Compact sets an internal price at a $100 minimum per metric ton of carbon emission.

There are two types of carbon pricing, this includes:

1. Emission Trading Systems

Emission trading systems create incentives in able to reduce emissions in the market. It is a cap and trade scheme wherein the government sets a limitation in allowing trade emission permits.

2. Carbon Taxes

Carbon taxes are fees imposed on burning coals, oils, and gases. The government set the amount of carbon taxes. It is a price that we need to pay for each greenhouse gas emission.

Ending The Use of Fossil Fuel Subsidies

Eliminating fossil fuel subsidies will raise government revenue. Fossil fuel companies are contributing to the climate crisis. The absence of subsidies will allow drilling lesser oil and gas. Ending subsidies to fossil fuels will stop us from paying for the climate crisis.

Increasing Energy Efficiency By Using Renewable Energy

Renewable resources produce clean energy. Renewable energy is more effective and efficient than non-renewable energy. You can generate renewable energy from natural processes without depletion. Renewable energy comes from:

1. Hydropower

Hydropower is an energy coming from the natural flow of water. Hydropower is a safe and reliable source of energy. Hydropower is an efficient energy source because it emits low pollutants that can affect climate change.

2. Wind power

Wind power is kinetic energy harnessed from the conversion of wind through turbines. Wind power is a cost-effective and sustainable source of energy.

3. olar power

Solar power is energy from the sun harnessed from solar panels. Solar energy is the cleanest renewable resource. It does not produce greenhouse gases and pollutants that can contribute to climate change.

4. Biomass energy

Biomass energy is the energy generated from living organisms like plants and animals. Biomass is an organic form of energy. It is widely available because organic materials are infinite.

5. Geothermal power

Geothermal power is energy from the steam. The steam comes from reservoirs of hot water below the earth’s surface. Geothermal power is long-lasting, safe, and reliable and has little impact on greenhouse gas emissions.

Using renewable resources means less pollution. Lower greenhouse gas emissions help mitigate the effect of climate change. The benefits of using renewable energy include:

  • renewable energy is not generating greenhouse gas emissions
  • renewable energy decreases harmful air pollutants
  • renewable energy lowers the environmental carbon footprint
  • renewable energy generates less water
  • renewable energy improves public health
  • renewable energy is inexhaustible
  • renewable energy generates more jobs
  • renewable energy benefits the world economy
  • renewable energy stabilizes energy prices

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