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Private Standards in the Climate Regime: The Greenhouse Gas Protocol

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  • Green Jessica F

    (Case Western Reserve University)

Abstract

This paper seeks to explain the success of two NGOs in creating standards for calculating and reporting greenhouse gas (GHG) emissions at the level of an entire company. These emissions accounting standards, called the Greenhouse Gas Protocol, have been widely adopted by multinational firms, emissions reporting registries, and even an emissions trading scheme. The paper traces the widespread adoption of the standards, and then offers an explanation for this successful instance of private regulation. It presents a supply and demand model of private entrepreneurial authority-where private actors project authority without delegation by states. The two NGOs were successful rule-makers because they were able meet a demand for three benefits to potential users of the standard: reduced transaction costs, first-mover advantage, and an opportunity to burnish their reputation as environmental leaders. The paper also explains the supply of private authority-that is, why we see entrepreneurial authority rather than delegation by states. The disagreement among developed countries on the appropriate role for emissions trading in the climate regime delayed action on developing firm-level accounting methodologies. Moreover, the relative weakness of the focal institution in the climate regime-the climate change Secretariat-meant that there was no obvious international organization to take up the task of creating new measurement tools.

Suggested Citation

  • Green Jessica F, 2010. "Private Standards in the Climate Regime: The Greenhouse Gas Protocol," Business and Politics, De Gruyter, vol. 12(3), pages 1-39, October.
    • Handle: RePEc:bpj:buspol:v:12:y:2010:i:3:n:3
    DOI: 10.2202/1469-3569.1318
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    References listed on IDEAS

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    1. Victor, David G. & House, Joshua C., 2006. "BP's emissions trading system," Energy Policy, Elsevier, vol. 34(15), pages 2100-2112, October.
    2. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2009," World Bank Publications - Reports 13403, The World Bank Group.
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    4. repec:wbk:wboper:13402 is not listed on IDEAS
    5. Prakash,Aseem & Potoski,Matthew, 2006. "The Voluntary Environmentalists," Cambridge Books, Cambridge University Press, number 9780521860413.
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    7. Prakash,Aseem & Potoski,Matthew, 2006. "The Voluntary Environmentalists," Cambridge Books, Cambridge University Press, number 9780521677721.
    Full references (including those not matched with items on IDEAS)

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    6. Binh Bui & Muhammad Nurul Houqe & Muhammad Kaleem Zahir-ul-Hassan, 2022. "Moderating effect of carbon accounting systems on strategy and carbon performance: a CDP analysis," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(4), pages 483-524, December.
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    9. Rainer Kasperzak & Marko Kureljusic & Lucas Reisch & Simon Thies, 2023. "Accounting for Carbon Emissions—Current State of Sustainability Reporting Practice under the GHG Protocol," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
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    11. Jessica F Green, 2017. "Policy entrepreneurship in climate governance: Toward a comparative approach," Environment and Planning C, , vol. 35(8), pages 1471-1482, December.
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    14. Jessica F. Green, 2017. "The strength of weakness: pseudo-clubs in the climate regime," Climatic Change, Springer, vol. 144(1), pages 41-52, September.
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    16. Auld Graeme & Cashore Benjamin & Balboa Cristina & Bozzi Laura & Renckens Stefan, 2010. "Can Technological Innovations Improve Private Regulation in the Global Economy?," Business and Politics, De Gruyter, vol. 12(3), pages 1-42, October.
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