Climate change isn't an issue for politicians alone - it's time for businesses and the legal profession to step up

Lawyers have a significant role not just in advising on incoming energy and climate regulation, but also in developing new structures and precedents, and in advising on new aspects of corporate governance and risk management.

For decades politicians have looked to a cadre of scientists, economists, think tanks and NGOs for help in devising international and national responses to the challenges of climate change. There were relatively few opportunities for business or the legal profession to influence the debate and there seemed to be little appreciation of how remote the world of UN climate negotiations seemed to the general public and to many in business. Often seen as a political issue, in order to implement climate change policies effectively industry needs to be instructed and incentivised by a body of clear, collective regulation if it is to make the long term investments required to lower our dependency on fossil fuels and lower global carbon emission.

The scale and the uncertainties around climate change meant that regulating was never going to be easy. The global downturn has also, inevitably, diminished the vitality of the debate. Governments, to their credit, have continued to regulate but have in some cases appeared slow to appreciate the importance of commercial certainty. There has also been a tendency to underestimate the impact of regulatory tinkering on willingness to invest. Many policy initiatives have involved a considerable learning process in relation to the interaction of environmental constraints and market forces. This has included regimes for trading carbon credits, which required the elision of environmental and financial markets expertise, and schemes for reducing emissions from the built environment which have struggled with the implications of landlord - tenant arrangements.

In response to these challenges, the Legal Sector Alliance on Climate Change, an association of 270 commercial law firms, has argued publicly for effective regulation in relation to climate change and low carbon energy. In its most recent communiqué eight principles were set out that policy makers should take into account in formulating new policy and regulation, which includes recommendations relating to investment incentives and the standardisation of products and reporting standards.

There are signs that the mood is shifting towards working with business. Private sector consultation on the development of new UN mechanisms is being encouraged. COP 19 in Warsaw has been promoted as a "business COP", with Poland encouraging the UN to bridge the gap between the policies being shaped through negotiations and the role of business in implementing and financing these obligations. Lawyers can decode and help shape the debate in these areas.

Because the scientific community is in broad agreement on the reality of climate change, it is a risk that companies have to consider as a matter of good management. This makes climate change one among many factors that businesses consider in relation to new projects, transactions, or as part of their risk management and governance processes.

For most sectors climate change is an area comparable to other more traditional issues on which lawyers advise. For the energy sector and for energy intensive business, the impact of the policy response to climate change is likely to be more profound, albeit over a long timescale.  While the primary energy sources for the foreseeable future are fossil fuels, the market share for renewables continues to grow and there is an developing focus on the energy efficiency of buildings, industrial operations and products. These changes are creating new business models, additional issues in transactions and operational challenges. For these industries, lawyers have a significant role not just in advising on incoming regulation, but also in developing new structures and precedents, and in advising on new aspects of corporate governance and risk management. So as the volume of regulation relevant to climate change evolves, expect the role of lawyers to be much broader and more important.

The Legal Sector Alliance on Climate Change has set out eight principles for formulating new policy and regulation. Photograph: Getty Images.

Co-CEO of DLA Piper

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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