Who pays for climate change?

Climate change comes with a price. The transition to climate-neutrality requires investment. Preparing for extreme weather events and other climate-related risks also incurs substantial costs. Significant funds are already being allocated to compensate losses from climate-related disasters such as the recent flooding in the Ahr River valley.

A principle of civil law is that the party causing the harm is liable for the resulting costs. Given the significant contribution of corporate greenhouse gas emissions to climate change, it seems reasonable to expect that corporations should be asked to pay their share.

My research examines the scope of corporate financial responsibility for addressing climate change. What specific corporate activities incur liability? Will certificate systems do, or will complete avoidance of carbon emissions be necessary? Should corporations be liable to make restitution?  

Vincent Hoppmann
is a research associate at the Institute.
He studies the interface between business and sustainability. 
More on Vincent Hoppmann and his research can be found here.