Is the nation-state no longer the key factor when it comes to the governance of environmental change?
This article examines whether nation-states still hold the primary role in managing environmental change or if other actors, such as corporations and civil society, have taken on more significant responsibilities.
To set the stage, we first clarify essential concepts, including the 'nation-state', 'Global Environmental Change', and 'governance'. We will then explore how recent public activism and market dynamics are reshaping environmental policies. Investigating major polluters and economic impacts shows how nation-states' roles are evolving. The analysis also includes a critique of policy responses, such as the EU's new reporting standards. We will conclude by discussing the importance of a collaborative approach involving multiple actors to effectively tackle environmental challenges.
In the academic field of environmental change, definitions seem to harm understanding as well as interpretation of terminologies (Mason, 2019), (Karimo, 2023). Due to this inconvenience, the stage will be set with clear definitions that are used throughout the essay. The nation-state combines cultural and institutional structures, facing challenges in maintaining sovereignty amid global influences (Holton, 2011). Global Environmental Change involves large-scale transformations in Earth's systems, like disruptions in carbon cycles and biodiversity loss. It also covers changes at local and regional levels, particularly those driven by human activities, like waste production, species extirpation, and land use changes (Pyhälä, 2016). Governance involves the actions of governing entities, where any actor with enough power can govern others (Languages, 2024).
Public activism, like Fridays for Future, is shifting environmental governance from top-down policies to more participatory approaches (Fisher, 2019)(Imperial, 2021).
Consumers drive sustainable practices through purchasing power. The meat-alternative industry has boomed in the last years, the demand has been increasing and it does not seem to be stopping soon. The main reasons for plant-based meat alternatives development are environmental concerns (He, 2020) (Franca, 2022). This market-driven change highlights how consumers, as economic actors, can influence environmental outcomes. People govern environmental change through demand and participation.
The world’s biggest polluters are oil and gas companies such as Saudi Aramco, with 59.26 billion tonnes of CO2 poured into the atmosphere since 1965 (Conmy, 2023). The dual role of oil and gas firms as major polluters and influential lobbyists in the energy transition shows a complex dynamic in global environmental governance. These companies are responsible for significant greenhouse gas emissions and environmental degradation and are facing increasing scrutiny and pressure to transition towards sustainable energy practices. However, their strong and past economic power and financial resources enable them to shape energy policies and regulations to their advantage (Beck, 2021).
Moreover, the influence of organizations and the economy on environmental governance cannot be overlooked. The concept of the "invisible hand" of the market, as posited by Adam Smith, suggests that individual self-interest in a competitive market can lead to positive social outcomes (Smith, 1776). However, in the context of environmental change, this mechanism often falls short. Market failures, such as the inability to price environmental externalities correctly, necessitate intervention beyond the market itself. The profitability of renewable energy has been another contentious issue. Transitioning to renewable energy is costly, and organizations often need policy support and financial incentives to invest. (Morris, 2016).
The big companies of this world can decide whether environmental change should happen or not, the lobby is big, and the revenues of the companies are high. Their form of acting and governing does not seem to be promising for the future of this world until a drastic change is made.
Since the Paris Agreement in 2015, the countries did not seem to have evolved, “The world is not on track to meet the long-term goals of the Paris Agreement.” (United-Nations, 2022). This suggests a decline in the influence of nation-states.
The EU provides a compelling new reporting standard regarding governance in environmental change, policies such as the Corporate Sustainability Reporting Directive exemplify how the EU is taking significant steps to regulate corporate environmental impacts. These policies mandate transparency and accountability, aiming to integrate sustainability into the core of business operations (European-Commission, 2023). Such regulatory frameworks are essential in ensuring that businesses contribute positively to environmental goals.
Another factor influencing nation-states to act or not act in terms of environmental change is the political party in power. Nation-states and their policy behind it seemed to be falling asleep after the Paris Agreement since there were not enough changes being made. Still, they are actors with an influence on the environment, they also can govern this change positively and negatively. The issue is not the decline of nation-states, but the rise of other powerful actors. It is a multi-actor problem, where everyone pulls their thread in their direction, but no one pulls in the same direction.
In conclusion, the multifaceted nature of global environmental change reveals the complexity of governance in this domain. The interplay between nation-states, corporations, and civil society demonstrates that environmental issues cannot be addressed by a singular actor or approach. Despite the apparent stagnation in meeting international climate goals, as highlighted by the Paris Agreement's shortcomings, new frameworks such as the EU’s Corporate Sustainability Reporting Directive offer a glimmer of hope. These frameworks illustrate a growing trend towards transparency and accountability. However, the entrenched power of major polluters and the fragmented nature of current governance underscore the need for a unified effort. Only through collaborative, multi-actor strategies can we hope to tackle the urgent environmental challenges facing our planet effectively.
Have a great and impactful week!
Anna Schoeber
Alumna of Católica Lisbon School of Business & Economics