Climate Change
Study reveals how much carbon damage would cost corporations if they paid for their emissions
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
Japan, UNOPS partner on $9.4m climate adaptation initiative in Afghanistan
Japan and the UN Office for Project Services (UNOPS) have signed a $9.4 million grant agreement aimed at strengthening climate adaptation and disaster preparedness in Afghanistan.
The agreement, valued at 1.474 billion Japanese yen ($9.4 million) was signed by UNOPS Afghanistan Country Director Katy Ann Webley and Japan International Cooperation Agency (JICA) Afghanistan Chief Representative Sota Tosaka.
The project will be implemented in Kabul province and focuses on improving the capacity of local communities to cope with climate-related disasters.
Using a community-led approach, the programme will support the construction of infrastructure designed to reduce the impact of floods, droughts and other climate risks, alongside training to improve emergency preparedness and response.
Over the next 24 months, UNOPS will carry out activities aimed at enhancing climate risk awareness, strengthening local resilience and protecting livelihoods vulnerable to the effects of climate change.
Climate Change
Winter storm disrupts US travel, triggers thousands of flight cancellations
The disruptions followed a chaotic Sunday, when about 11,000 flights were scrapped—the highest daily total since the COVID-19 pandemic
A powerful winter storm sweeping across the United States brought air travel to a near standstill on Monday, forcing airlines to cancel and delay thousands of flights as freezing rain and heavy snowfall battered large parts of the country.
By late afternoon, nearly 19% of scheduled flights had been canceled, according to aviation analytics firm Cirium. Separate data from FlightAware showed around 5,220 U.S. flights were canceled and more than 6,500 delayed by early evening.
The disruptions followed a chaotic Sunday, when about 11,000 flights were scrapped—the highest daily total since the COVID-19 pandemic, Cirium said.
The massive storm dumped up to a foot of snow from New Mexico to New England, paralyzing much of the eastern United States and contributing to at least 18 deaths. Extreme cold is expected to linger in some areas through the week.
American Airlines accounted for the largest share of disruptions on Monday, canceling nearly 1,180 flights and delaying about 1,130, followed by Republic Airways, JetBlue Airways, and Delta Air Lines.
In an advisory, the Federal Aviation Administration (FAA) warned that snow, freezing rain, and low visibility were affecting major hubs, including Boston and the New York metropolitan area. Boston Logan International Airport recorded the highest cancellation rate at 71%, according to Cirium.
American Airlines said the storm disrupted operations at five of its nine hub airports, including its largest base at Dallas–Fort Worth, where freezing temperatures and ice grounded flights.
The carrier requested FAA-approved ground stops for all its flights at Dallas–Fort Worth and Ronald Reagan Washington National Airport to manage gate capacity constraints.
The airline said teams were working around the clock to restore operations, as frustrated passengers flooded social media with requests for updates and assistance.
United Airlines said it had begun restoring flights, with cancellations dropping sharply from 1,019 on Sunday to 320 by Monday evening, FlightAware data showed.
The storm is on track to become the costliest severe weather event since the Los Angeles-area wildfires in early 2025, with preliminary damage and economic losses estimated between $105 billion and $115 billion, according to AccuWeather.
Airline operations remain vulnerable due to the interconnected nature of flight schedules, where cancellations can leave aircraft and crews out of position, slowing recovery efforts. Already, about 285 flights scheduled for Tuesday have been canceled, FlightAware data showed.
Climate Change
FAO warns of dry winter, low snowfall and rising food insecurity risks in Afghanistan
The Food and Agriculture Organization of the United Nations (FAO) has warned that Afghanistan is likely to face a drier and warmer-than-average winter, raising serious concerns about water availability, agricultural production and food security.
In its Seasonal Climate Outlook for December 2025 to February 2026, FAO said a weak La Niña pattern is driving below-average precipitation and above-average temperatures across most parts of the country. The report notes that the 2025/26 wet season has already begun drier and warmer than normal, with widespread soil moisture deficits persisting for another consecutive year
According to FAO, snow accumulation remains exceptionally low, with snow-water-equivalent levels at their lowest point in the past 25 years. This poses a critical hydrological risk, particularly for irrigated wheat-growing areas that depend on snowmelt-fed river systems. Even if precipitation improves later in winter, early deficits are unlikely to be fully offset, the report said
The outlook projects that December, January and February will all carry an elevated risk of below-normal rainfall, especially in northern, northeastern, western and central highland regions. Warmer daytime temperatures combined with cold nights are also expected to increase stress on crops, livestock and vulnerable communities
FAO warned that continued dryness could delay planting and weaken crop establishment for rain-fed winter wheat and barley, potentially reducing yields for the 2026 harvest. In irrigated areas, low snowpack threatens spring water supplies, increasing competition for water and reliance on already stressed groundwater resources.
Rangeland and pasture conditions are also expected to deteriorate, with delayed green-up likely to force herders to depend longer on stored fodder. This could lead to declining livestock health, reduced milk production and increased risk of animal losses toward late winter and early spring, the report said.
FAO and partner assessments caution that consecutive seasons of insufficient rainfall and high temperatures have already weakened agricultural systems and could leave millions of people facing acute food insecurity between late 2025 and early 2026
The UN agency emphasized the need for close monitoring of precipitation, snowpack and crop conditions, calling for timely agricultural support, improved water management and early anticipatory action to mitigate the impacts of the unfolding climate risks.
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