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SSC RWTH > Chapter 2 - Political-Legal Perspective > Flashcards

Chapter 2 - Political-Legal Perspective Flashcards

1
Q

What co-regulation exists for companies and how does it differ?

A

Environmental management standard ISO 14001:
- Establishment and continual improvement of an environmental management system (organisation)
- Improvement of the system, not of performance
EMAS III:
- Continuous reduction of environmental impacts (site)
- Gives higher requirements & builds on ISO 14001

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2
Q

What changes have been made to the Federal Climate Protection Act (KSG)?

A
  • German government tightens climate protection targets and establishes the goal of greenhouse gas neutrality by 2045
  • Emissions are to be reduced by 65 per cent by 2030 compared to 1990
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3
Q

Classification of policy instruments: Support & capacity building

A

Improve the knowledge and skills of companies
Examples:
* Research

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4
Q

Classification of policy instruments: Self-regulation

A

Self-regulation
Promote and further strengthen social influence on decision-making behavior.
Examples:
* Awareness

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5
Q

Classification of policy instruments: Regulatory instruments

A

Direct behavioral control through commandments, prohibitions or requirements Examples:
* Thresholds (emission limits)
* Permits/ Technical

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6
Q

Name the substantive criticism of the Federal Constitutional Court of the Federal Climate Protection Act (KSG):

A
  • Federal Constitutional Court has declared parts of the Climate Protection Act to be unconstitutional, thereby strengthening climate protection in Germany
  • Interim targets for the period after 2030 are missing from the law
  • This is not fair or reasonable for future generations
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7
Q

Name the contents of the Due Diligence Act (Supply Chain Act):

A
  • Establishment of a risk management system and performance of a risk analysis
  • Adoption of a declaration of principles for the corporate human rights strategy
  • Establishment of preventive measures in the company’s own business area and vis-à-vis direct suppliers
  • Immediate implementation of remedial measures in the event of identified legal violations
  • Establishment of a complaints procedure in the event of legal violations
  • Duty to document and report on the fulfilment of due diligence obligations
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8
Q

Name co-regulations in social policy:

A

Social Accountability 8000
- Improving the working conditions of employees
ISO 26000
- Systematic identification, prioritisation & perception of social responsibility
Further:
- Global Reporting Initiative G4 standard
- AccountAbility 1000 Assurance Standard

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9
Q

Classification of policy instruments: Information-based instruments

A

Provide better information to customers and other stakeholders
Examples:
* Sustainability reports
* Energy efficiency

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10
Q

German law: Social laws Examples

A

ArbZG (Arbeitszeitgesetz), TVG (Tarifvertragsgesetz), BetrVG (Betreibsverfassungsgesetz), ASiG (Arbeitssicherheitsgestz), AÜG (Arbeitnehmerüberlassungsgesetz), Supply Chain Act (Lieferkettengesetz)

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11
Q

German law: Ecological laws Examples

A
  • BImschG: Bundes-Immissionsschutzgesetz (schädliche Umwelteinwirkungen auf Luft)
  • KrW-/AbfG: Kreislaufwirtschafts- & Abfallgesetz (Ressourcenschonung & Produktverantwortung)
  • WHG: Wasserhaushaltsgesetz (Senkung der Wasserbelastung)
  • BBodSchG: Bundes-Bodenschutzgesetz
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12
Q

Explain how emissions trading works in the EU:

A

Cap & Trade:
- Determining the amount of CO2 emissions (cap) -> amount of CO2 certificates per year
* Free allocation & auctioning in state auctions
* Certificates can be traded on the market -> market price for emissions

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13
Q

Classification of policy instruments: Economic instruments

A

Indirect behavior control through financial incentives
Examples:
* Taxes/duties (eco-tax)
* Tradable certificates (emissions trading)

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14
Q

Classification of policy instruments: Co-regulation

A

Negotiations and agreements with companies regarding standards to be achieved
Examples:
* Certifications (ISO 14001, ISO 26000, EMAS, etc.)

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15
Q

What is the central objective of the Due Diligence Act (Supply Chain Act)?

A

Requirements for responsible supply chain management
“Companies based in Germany with 3,000 employees or more (from 2024: 1,000) will be obliged to better fulfil their human rights responsibility and duty of care in their supply chains.”

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16
Q

Water Resources Act (Wasserhaushaltsgesetz, WHG)

A
  • Objective: Management of water bodies to protect water as public good and prevent pollution.
  • Protected property: Water
  • Exemplary contents:
    – Regulations on the discharge and introduction of substances into water bodies
    – Regulations on permissible water use
  • Supplemented, among other things, by legislation of the federal states (enforcement, supplementary water legislation), Waste Water Levy Act, Waste Water Ordinance.
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17
Q

The European Green Deal

A

“Climate change and environmental degradation are existential threats to Europe and the world. That is why Europe needs a new growth strategy if it is to succeed in its transition to a modern, resource-efficient and competitive economy in which
* no net greenhouse gas emissions are released by 2050
* economic growth is detached from resource use
* no one, person or region, is left behind.”
* All sectors of the economy must make an active contribution:

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18
Q

Relationship between level of consideration, policy instrument and sustainability dimension.

A

International Law > European Law > German Law
* Regulatory instruments
* Economic instruments
* Co-regulation
* Information-based instruments
* Self-regulation
* Support and capacity building

19
Q

Directive on Integrated Pollution Prevention and Control (EU IPPC Directive)

A

Goal: Avoiding transmedial problem shifting
Protected property: air, water and soil

Exemplary contents:
* Operator obligations and requirements for the approval of industrial plants  e.g. concept of „Best-Available-Technology” (see excursus)
* Waste Management
* Resource and energy efficiency
* Noise and incident risks

Transposed into national law in Germany in August 2001 by amendments to the BlmschG, WHG, KrW-/AbfG laws.

20
Q

Recycling & Waste Management Act (Kreislaufwirtschafts- & Abfallgesetz, KrW-/AbfG)

A

Goal: Society oriented toward material cycles and resource conservation
Protected property: not specified
Exemplary contents:
– Product responsibility, product design
– Ranking of recovery options: Prevention before recovery before disposal
Supplementation by further laws such as the End-of-Life Vehicles Act (AltfahrzeugG) and the Electrical and Electronic Equipment Act (ElektroG)

21
Q

4 Main Principles of European and German environmental policy

A

Polluter-pays principle (PPP)
Common burden principle/ „Gemeinlastprinzip“
Precautionary principle
Cooperative principle

22
Q

Precautionary principle

A

This principle encompasses all environmental policy instruments that serve to avert environmental damage before it can occur.
Example: catalytic converter in cars, stress tests for oil production plants/power stations

23
Q

Polluter-pays principle (PPP)

A

The entity responsible for causing an environmental pollution must bear the costs of its elimination.

24
Q

Levers for government environmental policy (Tipp: Influences)

A

Direct influence on behavior
* Direct influence on the behavior of private economic entities is usually implemented by environmental regulations. Environmental requirements are environment-related behavioral regulations that are aimed directly at the polluter. They can be designed as prohibitions or as requirements.
* Examples: Input requirements, output requirements, procedural requirements.
Influencing the general conditions
* When influencing general conditions, there are only indirect behavioral effects, the private economic entities can still take their own decisions
* Examples: Environmental levies, subsidies, environmental licenses.
Influencing the target setting
* moral persuasion of private economic entities that aim at the reduction and elimination of environmental damage.
* Examples: Information, appeals, social sanctions

25
Q

International climate policy baseline figures:

A
  • The Framework Convention on Climate Change forms the basis of international climate diplomacy.
  • In the Kyoto Protocol, binding greenhouse gas reduction targets were agreed for the first time under international law.
  • The Paris Agreement aims to limit global warming to well below 2°C and preferably to 1.5°C by the end of this century.
  • The fight against climate change will continue to require coordinated action by all states.
  • Climate finance plays a central role in the implementation of climate policy.
  • The International Climate Initiative (ICI) has been supporting climate protection in developing and emerging countries since 2008.
26
Q

German climate policy

A
  • German climate policy follows international and European climate protection goals.
  • The Climate Protection Plan 2050 differentiates the overarching greenhouse gas reduction goal by sectors.
  • Energy efficiency is a central pillar for reducing emissions in Germany.
  • There are numerous financing options for climate protection in Germany.
  • The National Climate Initiative (NKI) promotes projects for municipalities, businesses and consumers.
27
Q

Name of THE European climate policy

A

The European Green Deal

28
Q

Future developments EU ETS

A

EU ETS I:
* power generation, industry, maritime and aviation
* (inclusion of shipping from 2026)
* Reduction of emissions by 61% by 2030 (previously 43%) compared to 2005 levels
* Reduction factor emission certificates 4.2 %/year from 2024 onwards
* One-time reduction of the cap by 117 million CO2 allowances
EU ETS II:
* Emissions trading for the road transport (22% of emissions) and buildings (35% of emissions) sectors
* Reduction by 43 % by 2030 compared to 2005
* Reduction factor of the certificates 5.15 - 5.43 % / year
* In addition: CO2 border adjustment mechanism or Carbon Border Adjustment Mechanism (CBAM) to avoid carbon leakage

29
Q

Federal Soil Protection Act (Bundes-Bodenschutzgesetz, BBodSchG)

A
  • Goal: Sustainable protection and restoration of the soil function
  • Protected property: Soil
  • Exemplary contents:
    – Defense against harmful soil changes
    – Remediation of contaminated sites
    – Precaution against adverse effects
  • Supplemented, among others, by the Federal Soil Protection and Contaminated Sites Ordinance and other environmental laws (e.g. WHG)
30
Q

Federal Immission Control Act (Bundes-Immissionsschutzgesetz, BlmschG)

A
  • Objective: Protection against harmful effects on the environment
  • Protected property: Air
  • Exemplary contents:
    – Basic obligations for operators of production facilities
    – Procedure of the approval process for production facilities
  • Clarification in regulations, administrative provisions and technical instructions
31
Q

Federal Climate Protection Act (Bundes-Klimaschutzgesetz, KSG)

A
  • Goal: **Transformation of climate-neutral Germany, compliance with international agreements **(Kyoto Protocol, the Paris Climate Treaty)
  • Contents:
    – Target for the preservation and expansion of so-called natural sinks such as forests and peatlands.
    – Regulatory framework if measures are not sufficient: emergency program for emission sectors that exceed annual emission levels
    – Climate protection investment program (Climate Protection Immediate Action Program 2022): 8 billion euros for 2022, measures for the industry, energy, buildings, transport, agriculture and forests and peatlands sectors, as well as cross-cutting measures.
    – BMU program for decarbonization of industry: approx. 3.5 billion euros in funding for decarbonization of energy-intensive industry in the years 2021-2025
  • Adoption 17 December 2019
32
Q

European climate policy

A
  • The EU pursues a common climate protection policy in coordination with its member states.
  • EU emissions trading (EU-ETS, EU Emission Trading System) is a key climate protection instrument.
  • The reform of emissions trading in February 2018 had the effect of strengthening EU emissions trading.
  • Energy efficiency and renewable energies contribute to the reduction of greenhouse gas emissions across the EU.
33
Q

Cooperative principle

A

Instruments of the cooperative principle serve to increase environmental awareness by promoting the willingness of all social groups to take responsibility and participate in the elimination and prevention of environmental damage.
Example: Climate summit

34
Q

Common burden principle/ „Gemeinlastprinzip“

A

If the polluters of an environmental pollution or the share of damage attributable to them cannot be determined, the general public must pay for the costs of elimination.
Example: public sewage treatment plants or landfills

35
Q

Classification of policy instruments (6)

A
  • Regulatory instruments
  • Economic instruments
  • Co-regulation
  • Information-based instruments
  • Self-regulation
  • Support & capacity building
36
Q

Allocation mechanisms for emission rights

A

Grandfathering
* Each market participant receives as many certificates as they need to cover their historical pollution
* Advantage: No radical market distortions
* Disadvantage:Penalizing progressive companies so-called “windfall profits” arise

Benchmarking
* Definition of a best-available technology (BAT) for each industry sector or process
* All market participants receive free certificates in the amount of BAT’s CO2 emissions –
* Additional required certificates must be obtained through trading
* Disadvantage: Identification of BAT maybe difficult (e.g.,in the automotive industry)

Auction
* Certificates are auctioned off to the highest bidder
* Advantage: Creates high transparency on the marginal abatement costs of CO2 emissions

37
Q

Influencing the target setting

A

 moral persuasion of private economic entities that aim at the reduction and elimination of environmental damage.
 Examples: Information, appeals, social sanctions

38
Q

Influencing the general conditions

A

 When influencing general conditions, there are only indirect behavioral effects, the private economic entities can still take their own decisions
 Examples: Environmental levies, subsidies, environmental licenses.

39
Q

Direct influence on behavior

A

Direct influence on the behavior of private economic entities is usually implemented by environmental regulations. Environmental requirements are environment-related behavioral regulations that are aimed directly at the polluter. They can be designed as prohibitions or as requirements.
 Examples: Input requirements, output requirements, procedural requirements.

40
Q

Clean Development Mechanism (CDM) + Criticism

A

carbon offset scheme allowing countries (Annex B state) to fund GHG-reducing projects in other countries (Non-Annex B state) and claim the saved emissions as part of their own efforts to meet international emissions targets

Criticism:
* Additionality Issues (There have been concerns that some projects approved for CDM credits might have happened anyway or that the claimed emission reductions are overstated.)
* Perverse Incentives
* Baseline and Monitoring Issues

41
Q

3 Flexibility Mechanisms or Kyoto Mechanisms

A

emissions trading, the Clean Development Mechanism (CDM) and Joint Implementation (JI)

42
Q

Joint Implementation (JI) + Criticism

A

any Annex I country can invest in a project to reduce greenhouse gas emissions in any other Annex I country

Criticism:
* Additionality and Permanence (like CDM)
* Environmental Integrity
* Verification and Monitoring Issues

43
Q

emission trading 3 Allocation methods pro/con

A

Grandfathering
+avoid sudden economic shocks
-creating inequities and discouraging early adoption of cleaner technologies
Auctioning
+generating revenue
-potential regressive impact on lower-income/resistance from industries
Benchmarking
+rewarding industries/incentivizes the adoption of cleaner technologies
-benchmarks can be challenging/ more Bureaucracy

SSC RWTH (10 decks)

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