Has the Paris Climate Agreement Changed Corporate Behavior? - Seminar recap
On November 21th, 2024 the OHPA hosted a lecture by Dr. Jeff Colgan, Richard Holbrooke Professor in the Department of Political Science and Watson Institute for Public and International Affairs at Brown University. His talk “Has the Paris Climate Agreement Changed Corporate Behavior?” analyzes the impact of the Paris Climate Agreement (2015) on corporate decarbonization, focusing on the automotive industry. Dr. Colgan highlighted the role of international treaties in influencing firm behaviors and the challenges in assessing their effectiveness. His study examines 12 major automakers, aiming to determine whether the Paris Agreement motivated resource allocation toward electric vehicles (EVs).
Findings reveal limited impact: only two firms, BMW and Renault-Nissan, showed significant changes plausibly tied to the Agreement. Other firms demonstrated minimal shifts, often more influenced by domestic policies or advancements in EV technology than by the Paris Agreement itself. For instance, U.S. automakers like General Motors displayed reactive behavior, aligning with national political trends rather than international agreements. Factors such as weak enforcement mechanisms in the Paris framework and the absence of direct material incentives contributed to its limited influence.
Despite these challenges, the Paris Agreement has value in shaping global discourse and encouraging collaboration among NGOs and activists. COP meetings foster shared strategies and increased climate advocacy. Dr. Colgan’s research concludes that while international agreements play a role in setting goals, meaningful action largely depends on domestic policy enforcement and sustained pressure from societal movements and market forces.
The full talk as well as the subsequent discussion is available to view on YouTube here: https://youtu.be/-5v46XPntjQ