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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

Iran war is supercharging the clean energy transition, UN climate chief says

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The Iran war is “supercharging” the world’s shift to renewable energy, as countries scramble to reduce their exposure to volatile oil and ​gas markets, the U.N. climate secretary said on Thursday.

The U.S.-Israeli war ‌with Iran has upended oil and gas supplies, prompting some countries to ration fuel and others to roll out subsidies and tax cuts to shield consumers from surging prices, Reuters reported.

Early signs indicate the ​war, which began two months ago, is speeding up some countries’ low-carbon ​transition.

Demand for rooftop solar systems across Europe has surged, while countries ⁠including Pakistan have reported a jump in electric vehicle sales.

Chinese President Xi Jinping called this month ​to speed up the construction of a new energy system to safeguard energy ​security, emphasising hydropower development and the expansion of nuclear power.

“Those who’ve fought to keep the world hooked on fossil fuels are inadvertently supercharging the global renewables boom,” said Simon Stiell, Executive ​Secretary of the U.N.’s climate secretariat UNFCCC.

“Renewables offer safer, cheaper, cleaner energy ​that can’t be held captive by narrow shipping straits, or global conflicts,” Stiell told a meeting ‌of ⁠government officials at the International Energy Agency in Paris.

However, the war has also prompted some nations to increase the use of highly polluting coal or furnace oil-based power generation as they struggle to replace gas from the Middle East.

Turkey’s Climate Minister ​Murat Kurum – who will ​preside over the ⁠U.N.’s COP31 climate summit this year – said fossil fuel dependency now topped the global political agenda.

“The best way to protect ​citizens from the violent convulsions of global energy markets is ​to accelerate ⁠the clean-energy transition,” he said in a statement after the IEA event.

Around 60 governments including Brazil, Germany, Canada and Nigeria, met in Colombia this week for a summit to ⁠discuss how ​to phase out fossil fuels.

Conference hosts Colombia and ​the Netherlands said on Thursday countries had agreed to continue working, over the next year, on ​how to do this in their trade systems.

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Climate Change

Uzbek president emphasizes Afghanistan’s role in regional water cooperation

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At a regional water summit in Astana on Wednesday, Uzbekistan’s President Shavkat Mirziyoyev emphasized the importance of involving Afghanistan in broader regional cooperation on water, climate, and environmental issues.

He underlined that Afghanistan’s participation is essential for effective management of shared water resources in Central Asia, particularly in the Aral Sea basin, where upstream and downstream countries are closely interconnected.

The Uzbek president also called for increased international support for environmental protection and land reclamation projects inside Afghanistan.

He further stressed that long-term stability in the region will depend on the development of a legal framework governing water allocation that clearly defines the rights and obligations of all countries in the basin.

Uzbekistan’s authorities have expressed concern over the construction of the Qosh Tepa canal in Afghanistan, saying it could “radically change the water regime and balance” in Central Asia.

The Islamic Emirate of Afghanistan (IEA), however, has said that Uzbekistan will not be harmed by the canal.

 

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Climate Change

Webinar series highlights growing climate pressures on livelihoods in Afghanistan

Afghanistan is widely regarded as one of the countries most vulnerable to climate change, with limited capacity to manage its effects.

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A recent webinar series hosted by the United Nations Assistance Mission (UNAMA) in Afghanistan has underscored the escalating impact of climate change on humanitarian needs and livelihoods across Afghanistan.

Held in partnership with Samuel Hall, the six-part series in late 2025 brought together Afghan experts, humanitarian workers, UN agencies, NGOs and local stakeholders to examine the country’s mounting environmental challenges and explore potential responses.

Afghanistan is widely regarded as one of the countries most vulnerable to climate change, with limited capacity to manage its effects. Participants warned that communities are already facing severe consequences, including rising displacement, worsening food insecurity and increasing pressure on natural resources.

The discussions highlighted that nearly 70 percent of the population depends on climate-sensitive agriculture, leaving livelihoods exposed to shifting weather patterns. A changing water cycle has intensified water scarcity nationwide, while urban centres such as Kabul are grappling with declining groundwater levels.

At the same time, increasingly erratic seasonal flooding continues to damage homes, infrastructure and farmland, compounding humanitarian needs.

Speakers also pointed to the growing link between climate change and displacement, noting that environmental shocks are driving both internal migration and cross-border movements as livelihoods come under strain.

Across the six sessions, participants explored a range of themes, including water management, climate finance, the role of women and youth, and the intersection of climate change with peace and security.

The series aimed to amplify Afghan perspectives and maintain focus on the country’s climate challenges, particularly as Afghanistan remains largely absent from global climate forums.

Organisers said the discussions highlighted both the scale of the crisis and the depth of local expertise available to respond, while calling for sustained, coordinated and evidence-based action.

Summary notes and recordings from the sessions have been released to inform policymakers, donors and practitioners, outlining key recommendations and areas requiring further investment and collaboration.

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