An outcome of the international climate conference in Copenhagen (COP 15, 2009) was that a number of governments have undertaken to reduce their nations' greenhouse gas (GHG) emissions and some have provided targets and deadlines for the achievement of their stated goals. While the transition to a low-carbon environment has the potential to stimulate growth, create jobs and opportunities, and to bring benefits to the economy, there are many challenges in the process. This is an exploratory paper aimed at identifying the major regulatory and governance issues associated with the move to a low-carbon environment. In terms of business governance, CEOs and other executives responsible for corporate oversight will need to monitor, assess, and manage compliance with climate change and carbon-related regulation. In the transition period government regulation encouraging appropriate carbon costs classification and measurement, financial sustainability reporting and disclosure, and responsible carbon citizenship are expected to be predominant.
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