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GROUP 7
GLOBAL WARMING AND ITS
IMPACT ON INDUSTRY AND
CORPORATE SECTOR
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PRESENTED BY
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PRESENTED TO
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Dr.
Rajeshwar Nath
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WHAT IS GLOBAL
WARMING ?Click to edit Master text stylesSecond level
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EARLY SIGNS OF GLOBAL
WARMING!NS Glaciers melting
Ocean warming, sea-level rise and coastal flooding
Spreading disease
Earlier spring arrival
Plant and animal range shifts and population changes
Coral reef bleaching
Downpours, heavy snowfalls, and flooding
Droughts and fires
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5 CAUSES OF GLOBAL
WARMING1. Deforestation
2. Methane release3. Carbon dioxide
4.
Nitrous Oxide5. CFCs
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WHAT INDUSTRIES WOULD
GLOBAL WARMING HAVENEGATIVE EFFECTS ON?The International Intergovernmental Panel on ClimateChange (IPCC) states that the industries which will bemost affected by global warming or climate change arethose that depend on climate-sensitive resources. Theseindustries are located in the areas that will be mostseriously affected by increased flooding and frequencyof extreme weather events. There are both direct andindirect effects; for example, problems in agriculturewould affect all food-related industries.
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AND AS A RESULT IT
IMPACT ON INDUSTRY
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EFFECT ON WATER
INDUSTRYThe IPCC predicts that by the middle of the 21st century,the average yearly river runoff and water availability willincrease by 10 to 40 percent in the wet tropics and at
high latitudes, while it will decrease by 10 to 30 percentin the dry tropics and dry regions at mid-latitudes.Flooding and drought will become more common indifferent parts of the world. Reduced snow cover andglaciers will provide less water to the regions that depend
on them. These changes will negatively affect the waterindustry.
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NATURAL RESOURCES
Although crop productivity is expected to increase in some parts ofthe world, it will decrease in others, particularly in response todrought. This will have negative effects for agriculture and associatedfood production and distribution industries. Global food production isexpected to decrease if the temperature rise exceeds 1 to 3 degrees
C, according to the IPCC. Climate change will also affect forestry. TheIPCC predicts an increase in commercial timber production globally,but notes that the effects will vary in different parts of the world, aswith agriculture. Climate change will negatively affect the fishingindustry as well. The IPCC warns that the distribution of fish species
and their productivity will both change.
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EFFECT ON TOURISM
The tourism and recreation sectors are likely toexperience a serious negative impact fromclimate change, as they are dependent on
particular locations and natural resources. Skiresorts and low-lying tropical islands are mostat risk, as snowfall patterns change and the sealevel rises. Rising fuel prices could also affecttourism by restricting travel.
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EFFECT ON INSURANCE
INDUSTRYAn increase in the frequency and severity ofextreme weather events and flooding couldadversely affect the insurance sector byincreasing the number of large payouts theyhave to make. Cover against flooding and theother effects of climate change could becomemore expensive and difficult to obtain. Thiswould affect all industries negatively.
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EFFECT ON CONSTRUCTION
INDUSTRYFlooding and coastal erosion will affect certain areas,many of which are densely populated and industrialized.Coping with these threats or moving to safer areas will
be expensive. The construction industry will also haveto cope with the impact of climate change. Constructioncompanies will need to take more care when selectingsites and incorporate precautions against extremeweather and flooding into their plans.
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EFFECT ON FUEL
BUSINESSTaxes to offset the cost of carbon emissions to the environmenthave already been introduced in many jurisdictions. Governmentsthroughout North America have coined the term "carbon tax" todescribe costs which they say will be put towards protecting the
environment. Any petroleum products are included in this tax. Theresults of the increased costs of fuel could affect the profitability of
petroleum companies if people begin seeking other forms oftransportation. Businesses selling alternate fuels such as grasses,grains and other foliage could see a rise in sales. For example, the
price of corn could rise and be followed by an increase in the costfor food.
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OTHER RISKS
Effects on various other businesses are anticipated.For example, the price of fresh water is expected tosoar and higher value on water efficiency could result.
Facilities could be in danger of flash flooding, due totropical storms that are expected to result fromwarming. More government taxes and pollution
penalties are likely to be initiated, according to ZD Net.
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POSITIVE ECONOMIC IMPACTSOF GLOBAL WARMING
The threat posed by global warming is sparking what manyeconomists and political leaders hope will be a new technologicalrevolution. For decades, the global economy has been fueled by theavailability of cheap fossil fuels like coal and oil. It is now recognized
that our reliance on these fuels has come at a price. Greenhouse gasemissions produced by the burning of fossil fuels for energy andtransportation have contributed to global warming. This realizationhas contributed to increased support for cleaner, renewable sourcesof energy like wind and solar power. Demand for renewable energy
and energy efficiency could lead to the creation of new green jobs,and stimulate economic growth
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NY TimesGROUP 7 1919
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What can we do?
Calculate and understand your carbonfootprint
Reduce your use of energyLook for ways to use renewable energy
Support efforts by all who encourage
Energy efficiencyRenewables
Carbon neutrality
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TEN INDUSTRY ARGUMENTS
AGAINST ACTION ON GLOBALWARMING1. Binding emissions reductions before
2020 are too swift, and should not beimposed until the technology to removecarbon dioxide from coal-fired power
plants is commercially available
2. Global warming reductions will drive oiland gasoline prices even higher
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Cont.
3. Global warming reductions will decimatefamilies budgets.
4. Global warming reductions will sendAmerican jobs overseas to countries that donot reduce their emissions.
5. The Climate Security Act will wreck the
economy
6. Clean energy jobs will cost workers infossil fuel industries their jobs
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Cont
7. Global warming solutions will hurt the poor
8. The Climate Security Act will bankrupt Americanindustry unless we hand out lots of free pollutionpermits.
9. Steep reductions in greenhouse gases cannotoccur without a significant increase in subsidies fornuclear power.
10. Economic analyses by industry groups showthat the Climate Security Act is unaffordable, willlead to huge electricity rate hikes, and cost jobs.
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THANK YOU
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