IMD-2-0132 © 2007
Steger, Ulrich; Ionescu-Somers, Aileen
This case analyzes the manner economic development projects that minimize CO2 emissions can be supported by a Carbon Fund. The generated certificates are sold on the markets via the Kyoto mechanism. One is in the “Pays d’Enhaut”: in the Swiss mountains; just about an hour’s journey from IMD whereas the majority of the projects are in developing countries. In this deprived region (by Swiss standards); a project is intended to make an incorporated carbon market that will revitalize and broaden the economic development of the area.
Learning objective: Given the innovative nature of the initiatives explained in the instance; the primary objective is to shock” representatives of global businesses into thinking with a different mindset and propose alternatives that take account of a potential prevalent tendency towards incorporated carbon economic options. There is increasing pressure on businesses to do more about their carbon footprint but a lot of them would regard climate change as an elusive dilemma for which it's tough to establish strong internal relevance in companies in several industries. Discussion should inspire about tough but currently quite “hot” subjects.
Subjects: Carbon fund; Integrated carbon economy; Climate change Settings: Pays d'Enhaut; Switzerland; Carbon Fund (Consulting company); Start-up; About 10 employees; 2001-2007
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