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The Role of the Private Sector in Global Climate and Energy Governance

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  • José Andrade
  • José Puppim de Oliveira

Abstract

The private sector plays an active role in implementation of mechanisms concerning the mitigation of climate change. In spite of that, the corporate actors play a limited direct role in international arenas when it comes to negotiating the design of climate and energy regime. The climate and energy governance in the United Nations system remains mostly state-centric, but the active participation of corporate actors in negotiation of climate and energy regimes is essential to increase the effectiveness of their governance. Business is not just a subject of a regulatory climate and energy imposed by the state; rather, business is an intrinsic part of the fabric of climate and energy governance, as “rule-maker,” particularly in the many voluntary regimes. However, the architecture in place should guarantee that the private sector does not highjack the decisions and its positions are balanced by other non-governmental actors in the process. This article analyzes the role that the private sector can play in the global climate and energy governance. The private sector does not only play a “rule taker” role in the climate change and energy regime. Indeed, they are not passive observers as they influence through indirect means. The results suggest that the private sector is able to play a key role in global climate and energy governance based on the principle of multi-stakeholder participation in global decision-making, but the architecture should be able to balance the goods and bads of private direct influence in international regimes. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • José Andrade & José Puppim de Oliveira, 2015. "The Role of the Private Sector in Global Climate and Energy Governance," Journal of Business Ethics, Springer, vol. 130(2), pages 375-387, August.
    • Handle: RePEc:kap:jbuset:v:130:y:2015:i:2:p:375-387
    DOI: 10.1007/s10551-014-2235-3
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    References listed on IDEAS

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    Cited by:

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    5. Jose de Oliveira & Celio Andrade, 2016. "The political economy of clean energy transitions at sub-national level: Understanding the role of international climate regimes in energy policy in two Brazilian states," WIDER Working Paper Series 050, World Institute for Development Economic Research (UNU-WIDER).
    6. Janusz Reichel & Agata Rudnicka & Błażej Socha, 2023. "Energy Poverty—Do Energy Companies Care? Study Results from European Energy Companies," Energies, MDPI, vol. 16(18), pages 1-15, September.
    7. Hyunju Shin & Alexander E. Ellinger & Helenka Hopkins Nolan & Tyler D. DeCoster & Forrest Lane, 2018. "An Assessment of the Association Between Renewable Energy Utilization and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 151(4), pages 1121-1138, September.
    8. Jayme Walenta, 2020. "Climate risk assessments and science‐based targets: A review of emerging private sector climate action tools," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 11(2), March.
    9. Jose A. Puppim de Oliveira & Celio Andrade, 2016. "The political economy of clean energy transitions at sub-national level: Understanding the role of international climate regimes in energy policy in two Brazilian states," WIDER Working Paper Series wp-2016-50, World Institute for Development Economic Research (UNU-WIDER).

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