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Climate Change

Study reveals how much carbon damage would cost corporations if they paid for their emissions

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The world’s corporations produce so much climate change pollution, it could eat up about 44% of their profits if they had to pay damages for it, according to a study by economists of nearly 15,000 public companies.

The “corporate carbon damages” from those publicly owned companies analyzed — a fraction of all the corporations — probably runs in the trillions of dollars globally and in the hundreds of billions for American firms, one of the study authors estimated in figures that were not part of the published research. That’s based on the cost of carbon dioxide pollution that the United States government has proposed, the Associated Press reported.

Nearly 90% of that calculated damage comes from four industries: energy, utilities, transportation and manufacturing of materials such as steel. The study in Thursday’s Journal Science by a team of economists and finance professors looks at what new government efforts to get companies to report their emissions of heat-trapping gases would mean, both to the firm’s bottom lines and the world’s ecological health.

Earlier this year, the European Union enacted rules that would eventually require firms to disclose carbon emissions and the United States Securities and Exchange Commission and the state of California are looking at similar regulations.

Study co-author Christian Leuz, a finance and accounting professor at the University of Chicago, said the idea “of shining the light on corporate activities that have costs to society is very powerful, but it is not enough to save the planet.” An earlier study of his found that after fracking firms disclosed their pollution rates, those contamination levels dropped 10% to 15%, he said.

The idea is consumers and stockholders would see the damage and pressure firms to be cleaner, Leuz said.

Outside economists agreed.

Leuz and his colleagues used a private analysis firm that finds or estimates carbon emissions of some publicly owned companies and analyzed the carbon pollution from 14,879 firms. Then they compared them to company revenues and profits.

That calculation shows “which activities are particularly costly to society from a climate perspective,” Leuz said. Still, he cautioned that “it would not be correct to just blame the companies. It is not possible to divide responsibility for these damages between the firms that make the products and consumers who buy them.”

The calculations are for only a fraction of the world’s corporations, with many public companies not included and private firms not listed at all, Leuz said.

The economists didn’t identify or tease out single companies but instead grouped firms by industry and by country. And they only used direct emissions, not what happens downstream. So the gas in a person’s car does not count toward an oil company’s emissions or corporate carbon damages.

The calculations use the US Environmental Protection Agency's $190 cost per ton for carbon dioxide emissions and the study doesn’t give a bottom line number in dollars, just in percent of profit and revenues. Only when asked by The Associated Press did Leuz estimate it in the trillions of dollars.

At $190 a ton, the utility industry averaged damages more than twice its profits. Materials manufacturing, energy and transportation industries all had average damages that exceeded their profits.

On the opposite end, the banking and insurance industries averaged climate damages that were less than 1% of their profits.

When looking at companies based on countries, Russia and Indonesia were the top for corporate climate damages, while the United Kingdom and the United States were the lowest. Leuz said that reflects the age and efficiency of the companies and which type of industries were based in countries.

Several outside experts said the study made sense within certain limits, while a few found faults with some of the choices of what to count, saying not counting downstream emissions is a problem. Because it doesn’t count those it “does not provide an incentive to reduce these to the level needed,” said Bill Hare, CEO of Climate Analytics, which studies global emissions and reduction efforts.

“The results are important but perhaps not that surprising,” said Stanford University economist Marshall Burke. “The bigger take-home is the number of caveats that are needed to do this analysis, indicating what a mess our emissions accounting systems currently are.”

Appalachian State University’s Gregg Marland, who helps track global emissions by country, said “good numbers do allow us to know who is producing the products that consumers want with the least contribution to climate change.”

Nobel prize winning economist Paul Romer, formerly of the World Bank and now at Boston College, said the damage estimates are useful but need to be interpreted accurately, “without the moralistic framing and induced urge to punish.”

Romer used the example of his move from New York to Boston. The initial move would go under the moving company’s corporate carbon damage, but when he took some books from his home they would not. Misusing corporate carbon damage figures could put the moving company out of business and he’d drive his stuff instead, so total carbon emissions would not be changed. Shifting to zero carbon fuel makes more sense, he said.

Climate Change

Rescuers search for missing people in Nepal following flooding and landslides that killed 224

The death toll climbed to 224 and the injured to 158 while rescue efforts were still underway on Wednesday to look for 24 others

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Rescuers in Nepal searched Tuesday for two dozen people still missing and tried to recover the bodies of those killed in weekend flooding and landslides that left more than 200 dead.

The disaster came just ahead of the country’s biggest festival Dasain, which begins on Thursday, and roads were busier than usual as people returned home to celebrate with loved ones. The damage to roads is likely to hamper travel plans, Associated Press reported.

The deaths climbed to 224 and the injured to 158 while rescue efforts were underway to look for 24 others, said the government’s chief secretary Eak Narayan Aryal on Tuesday.

Prime Minister Khadga Prasad Oli’s administration has been heavily criticized for its slow response to the crisis, particularly after a landslide hit several vehicles stranded for hours just 16 kilometers from the capital, Kathmandu, killing about three dozen people.

Oli told reporters the government would continue to look for those missing and help the thousands impacted.

As the weather improved, workers started clearing the highways by the mountains after being blocked by landslides. Sections of several other highways next to raging rivers were washed away and repairing them is expected to require time and effort.

Of the 37 highways damaged, only nine have so far reopened for traffic.

The flooding was caused by heavy rain which arrived at the end of Nepal’s monsoon season that usually begins in June and ends by mid-September. Experts have attributed Nepal’s changing rain pattern to climate change. 

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Climate Change

US southeast faces daunting task cleaning up from Helene; death toll rises

At least 3.5 million customers remained without power across five states, with authorities warning it could be several days before services were fully restored.

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Authorities across a wide swath of the southeastern United States faced the daunting task on Saturday of cleaning up from Hurricane Helene, one of the most powerful to hit the country, as the death toll continued to rise.

At least 43 deaths were reported by late on Friday, and officials feared still more bodies would be discovered across several states, Reuters reported.

Helene, downgraded late on Friday to a post-tropical cyclone, continued to produce heavy rains across several states, sparking life-threatening flooding that threatened to create dam failures that could inundate entire towns.

In Florida's Pinellas County near Tampa, Sheriff Bob Gualtieri said he had never seen destruction like that which Helene wrought. "I would just describe it, having spent the last few hours out there, as a war zone," Gualtieri told a press conference.

At least 3.5 million customers remained without power across five states, with authorities warning it could be several days before services were fully restored.

Scientists say climate change contributes to fueling stronger, more destructive hurricanes.

Before moving north through Georgia and into Tennessee and the Carolinas, Helene hit Florida's Big Bend region as a powerful Category 4 hurricane on Thursday night, packing 140 mph (225 kph) winds. It left behind a chaotic landscape of overturned boats in harbors, felled trees, submerged cars and flooded streets.

Police and firefighters carried out thousands of water rescues throughout the affected states on Friday.

More than 50 people were rescued from the roof of a hospital in Unicoi County, Tennessee, about 120 miles (200 km) northeast of Knoxville, state officials said, after floodwaters swamped the rural community.

Rising waters from the Nolichucky River prevented ambulances and emergency vehicles from evacuating patients and others there, the Unicoi County Emergency Management Agency said on social media. Emergency crews in boats and helicopters were conducting rescues.

Elsewhere in Tennessee, Rob Mathis, the mayor of Cocke County, ordered the evacuation of downtown Newport because of a potential failure at the nearby Walters dam.

In western North Carolina, Rutherford County emergency officials warned residents near the Lake Lure Dam that it might fail, although they said late on Friday that failure did not appear imminent.

In nearby Buncombe County, landslides forced interstates 40 and 26 to close, the county said on X.

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Climate Change

Myanmar’s flooding death toll rises to 113, state media reports

State media also reported that five dams, four pagodas, and more than 65,000 houses were destroyed by the flooding.

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Myanmar's death toll from floods rose to at least 113 as of Saturday evening, the country's military government said on Sunday, following heavy rains brought on by Typhoon Yagi that has caused havoc across parts of Southeast Asia, Reuters reported.

At least 320,000 people have been displaced and 64 were still missing, government spokesman Zaw Min Tun said, according to a late-night bulletin on state-run MRTV.

"The government is conducting a rescue and rehabilitation mission," he said.

Adverse weather from Typhoon Yagi, the strongest storm to hit Asia this year, has killed hundreds of people in Vietnam and Thailand, and flood waters from swollen rivers have inundated cities in both countries.

The flooding in Myanmar began last Monday, with at least 74 people killed by Friday, based on state media reports.

Myanmar has been in turmoil since a military coup in February 2021 and violence has engulfed large parts of the country, read the report.

The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) said the storm's rains mainly affected the capital Naypyitaw, as well as the Mandalay, Magway, and Bago regions, along with eastern and southern Shan state, Mon, Kayah and Kayin states.

"Central Myanmar is currently the hardest hit, with numerous rivers and creeks flowing down from Shan hills," the OCHA said.

Reports of more deaths and landslides have emerged, but gathering information has been challenging due to damaged infrastructure and downed phone and internet lines.

State media also reported that five dams, four pagodas, and more than 65,000 houses were destroyed by the flooding.

About a third of Myanmar's 55 million people require humanitarian assistance but many aid agencies, such as the International Committee of the Red Cross, cannot operate in many areas because of access restrictions and security risks, Reuters reported.

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