This case examines the way a Carbon Fund can support economic development projects that minimize CO2 emissions. The generated certificates are sold on the markets via the Kyoto mechanism. Whereas most of the projects are in developing countries, one is in the Swiss mountains, only about an hour’s journey from IMD: in the “Pays d’Enhaut”. In this poor region (by Swiss standards), a project is planned to create an integrated carbon economy that will revitalize and broaden the economic development of the area.
Given the innovative nature of the initiatives described in the case, the main objective is to “jolt” representatives of global companies into thinking with another mindset and propose solutions that take account of a potential widespread trend towards integrated carbon economic solutions. There is increasing pressure on companies to do more about their carbon footprint but many would regard climate change as an elusive issue for which it is difficult to establish strong internal relevance in companies in many industries. The case should inspire discussion about difficult but currently very “hot” topics.
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