European Business and Policy Environment - Essay Example

Research Study Research Study Important Aspects of the European Business and Policy Environment Titus Rock Manickam Order No. 224084 12 May 2008 Research Study Important Aspects of the European Business and Policy Environment Introduction Undoubtedly, European economy is of pioneering importance the world over and has been the role model for developing economies since the industrial revolution. Since medieval times, Europe has been on the forefront in commerce and trade, and this was the driving force in explorations and acquisition of foreign territories. Added to these, scientific discoveries and inventions along with economic and social advancements made life easier and more comfortable. The intervening period between medieval and modern ages saw Europe emerge from a region of conquests and conflicts to a union of tremendous power and potential in continental and global affairs. The scientific and technological advantages Europe gained gave her leading position in economic affairs. Bitter lessons learnt from two world wars have forged strong bonds between nations like England, France, Spain, Portugal, Germany and Italy who not very long while ago had dangerous political, military and economic rivalries. Total dependence on technological features at the cost of well established traditional practices have however proved to be the bane of modern Europe. Excessive freedom and individual rights have eroded familial and social values, and their effects are felt in increasing number of disharmony and relationship breakdowns in marriages and personal lives. Europe's commitment to environmental issues, however, is laudable and her persistent efforts to address this issue not only in continental forums but also at international levels are bound to have salutary effects not only environmentally but also on world economy. Improved environment will also positively contribute to health issues and productivity. (EU sees green future for business) Environment issues and pollution are intrinsically linked to efficiency in the power sector, natural resources and waste management. These necessitate regulatory and monitoring bodies with wide ranging powers to coordinate, check, frame and update policies, provide guidelines, maintain tight leash to curb deviations, and penalize non-compliance. (EU Business) Europe's dependence on fossil fuel also figures on environmental problems making it very important to change over to alternative eco-friendly biomass fuel for environmental and economic reasons. (Georges Markatatos, 8/6/2006) The Impact of Sud Chemie on alternative sources of energy Headquartered in Munich, Germany, Sud Chemie Group is operational globally and its sound, in-depth acquaintance, knowledge and expertise in the field of conventional and non-conventional energy resources makes it critically important for the company to pioneer efforts on switching over to eco-friendly renewable energy resources. Sud Chemie's philosophy of sparing use of conventional energy and water give its products advantageous position on reduction of emission levels and thus bring down pollution levels through lower energy consumption and higher efficiency. (Sud Chemie) Currently, the high demand for fossil fuel and its cost of production and distribution is outweighing its adverse impact on environment and the abilities of the governments to introduce legislative reforms in the power and energy sectors. This factor is also dwarfing attempts by concerned lobbies to push for viable alternatives in the form of renewable energy sources. Eco-friendly renewable energy resources industry Currently, the cost of renewable energy consumption in Europe and elsewhere is very high as compared to fossil fuels. Therefore, the momentum for switching over to renewable sources such as biomass energy does not look encouraging for the moment and the foreseeable future. Research for development purposes of the renewable energies is disintegrated due to diversities in the availability and form of renewable energies. Renewable energy sources are manifold in the form of bio-fuel, wind, solar, photo voltaic, geo-thermal, bio-thermal, etc. Nonetheless, in view of the inevitability of the switch over in the not-so-distant future, the two-pronged approach of low-consumption, higher efficient conventional fossil fuel operated products and sustained efforts at production and generation of low-cost biomass energy resources is paramount to ensure reduction of polluting gas emissions for environmental safety. (Biomass partnerships) In the transition to renewable energies, initiatives such as incentives to small scale generation of power for captive use as also their allowance to sell excess generation will propel the industry to maximize renewable energies production. The switch over from fossil fuel to renewable sources itself cannot happen at one go. The transition is bound to be slow, and accomplished in stages. Compared to other non-fossil fuel energy, nuclear power appears to have distinct advantages. However, nuclear energy is still beset with problems of health hazards and safety measures. The case of Chernobyl is still too fresh in the minds of everyone concerned with power to obviate safety standards. Sud Chemie in the European Market Sud Chemie has widespread presence across Europe in Austria, Czech Republic, Finland, France, Germany, Great Britain, Greece, Italy, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, Turkey, and Ukraine. With health, safety, and environment responsibilities as its cornerstone, Sud Chemie has strategically positioned itself as a business corporation committed to social and environmental concerns. Sud Chemie's presence in almost all of Europe provides it with first hand information and resources to synchronize its activities with latest technologies for non-conventional energies, notably biomass renewal energy, and safer environmental issues. Further, its presence in the rest of the world gives it the same advantages and benefits elsewhere as it does in the case of Europe. (Business Environment) Sud Chemie is a specialty chemicals company that draws on catalysts for efficient use of chemicals and petrochemicals processing for hydrogen production and emission control. Eighty percent of Sud Chemie's sales are generated outside Germany. Besides Europe, the company has notable presence in South East Asia and the Middle East. (Sud Chemie) Use of Renewable Energy Sources in Europe and USA Although there are encouraging policy initiatives taken by some countries in Europe and several states in the USA, it is difficult to expect uniformity in policies on use of renewable energy sources. The universal presence of fossil fuel and its widespread technological and economical utility makes an alternative scenario quite daunting and depressing. Nonetheless, advanced countries in Europe and many states in the USA are taking decisive measures to encourage use of renewable energy sources by providing benefits and incentives to the end-user and the industry in particular. Some of the benefits are in the form of portfolio targets, renewable energy certificates and carbon dioxide and other environmental taxes. By portfolio taxes the European Community has agreed to set national targets for renewable energy. The USA is debating national targets for renewable energy and 14 states have already instituted renewable portfolio standards. (Renewable Energy) Renewable energy certificate is a new concept to encourage means to achieve portfolio targets. It has been introduced as a means to develop a renewal market with penalty for non-compliance. Although its pros and cons and other salient features can only become clear with the passing of time, its introduction is a step in the right direction of encouragement to production and promotion of renewable energy and better environmental factors. Carbon dioxide and other environment taxes are initiatives to tax harmful content of energy sources and high consumption of electricity. This concept is a boost to renewable energy projects as it is bound to have decisive advantages over fossil fuel energy. Although the concept is new, it is generating positive effect. The high cost of renewable energies discourage developed and developing countries from changing over from the relatively cheaper fossil fuels. Renewable energies are available in various forms such as bio-energy, on-shore and off-shore wind, solar photo-voltaic, solar thermal, geo-thermal and hydro-thermal energies. The costs are expected to drop with technological advances. However, the technological improvements and consequent cost reductions together with their benefits to the environment are not yet viable enough to fossil fuels. Hence, it is difficult to predict a switch over to renewable energy sources on a large scale. Also, the diverse renewable energy sources are suitable to the areas each are found in quantities large enough to warrant competition with fossil fuel and natural gas. Here again, the variation in cost is high or low depending on the specific renewable energy source. The cost is high for bio-energy, offshore wind, photo-voltaic, solar thermal and geo-thermal energies. Technological advances and cost reductions emanating therewith can impact renewable energy sources as well as fossil fuel energy with improved efficiency. As a result, emission of harmful gases such as sulphur dioxide, carbon dioxide, nitrogen oxides, radiation, etc. get considerable reduced. (Renewable Energy) Teething Problems for Renewable Energies There are dangerous and debilitating trends coming in the way of the efforts to transfer to renewable energies. For the moment, the awareness of the presence of these trends is enough to make way for smoother transfer of power. First of all, the global presence of the powerful fossil fuel lobby is enervating in itself. No sane country or person would dare take on this lobby. Its tentacles are too well spread out in almost every sphere of industrial activity, be it power sector, business, travel, etc. Nonetheless, the switchover to renewable sources is inevitable and the sooner everyone sees the writing on the wall the better. Or else, it could turn out to be the classic tale of Rip Van Vinkle, blissfully awakening after two decades only to find the last drop of fossil fuel gone and his little village unrecognizable in confusing labyrinth of power supply. While on the subject, it is worthwhile to draw lessons from the erstwhile communist blocs of Soviet Union and Eastern Europe whose quixotic ideologies and draconian governing systems have left a legacy of Mafiosi which continues to confuse and haunt the common man in the absence of democratically evolved methodologies. Conclusion The increasing demand for power and the growing concern of deteriorating environmental issues such as the greenhouse effects has created a piquant situation for everyone from the governing authorities to the common citizen, and from the scientist to the social activist. The need of the hour is for strong political will and unwavering focus on locally available renewable energy sources with large customer base so that sustained coordination and efforts between conventional and non-conventional energy sources enable intermittent and cost effective uses of both conventional and non-conventional energies, benefiting end-users as well as environment factors. Efficient and cost-effective production and supply of power combined with its ready availability, judicious use and minimal adverse effects on the environment are global priorities no one can afford to shy away from any longer. The Use Sources: Biomass partnerships, www.swea.co.uk/Biomass Partnerships.htm. Birmingham Business School, BA European Business Management, University of Birmingham, http://www.business.bham.ac.uk/undergraduate/programmes/euro_bus_management.shtml. Business Environment, SCADPlus, Activities of the European Union, http://europa.eu/scadplus/leg/en/s25001.htm. Business Ethics Policy, G4S, Group 4 Securicor, http://www.g4s.com/home/csr/csr-business_ethics-policy.htm#good_citizen. Enterprise and Industry, The European e-Business Market W@tch, http://www.ebusiness-watch.org/about/policy_context.htm. Environment, CEN, European Committee for Standardization, http://www.cen.eu/cenorm/businessdomains/businessdomains/environment/index.asp. 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Sud Chemie, http://www.sud-chemie.com/scmcms/web/page_en_2991.htm. Read More