WHAT CAN GOVERNMENTS DO TO SUPPORT ENVIRONMENTAL INNOVATION?

Companies that can afford it, invest billions of dollars a year, to reduce and mitigate the environmental and social effects of the damage caused by the manufacture and transportation of their raw materials. These investments need what we know as research and development, infrastructure construction, maintenance and attest that processes are regulated and follow the laws in force.

Inventos-ecologicos

It is necessary that such companies have incentives to achieve the objectives imposed by the standards and that the consequences of manufacturing and transportation do not directly or indirectly affect the environment. For this reason, the companies invest in state-of-the-art technologies that minimize the decline in environmental degradation, with the idea of ​​not facing costly consequences before governments, courts, public opinion, etc …
Among the problems in which an adequate environmental policy is needed, three stand out: the increasing complications surrounding official environmental assessments, the emergence of the concept of social license and the effects of changes in fiscal and regulatory environments.

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At the global level environmental assessment processes have been unduly long, complicated, costly and uncertain. This increases the risks of investment by companies and could lead to the abandonment of probably successful projects. Trying to replace or improve infrastructure has become a global nightmare and the bureaucracy generated around the environment does not help the development of new technologies and innovations to come to fruition, so the first step would be to manage more Agile all that implies the evaluation at the level of Environment.

industria-medioambiente
The concept of social license that exists in many countries has increased the risks of innovations and investments, which could lead to better environmental results. Social license is such a diffuse concept in deciding what projects will be allowed by regulatory institutions, which opens the door to arbitrary decisions and threatens the rule of law. Finally, a company that commits itself to a major investment, whether in infrastructure or innovation, expects a return on its investment. The yield calculated is always hypothetical, since the future is unknown, but one of the determinants of return is the cost of regulation and taxation. A volatile regulatory and fiscal environment discourages investment as it creates additional uncertainty.

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