Carbon Credit Negotiation
The case “Carbon Credit Negotiation” explores the negotiation between Eclipse Climate, a European carbon trading firm, and Alpha Air, a Denver-based airline. It focuses on Eclipse Climate’s efforts to sell carbon credits to Alpha Air as part of their strategy to achieve net-zero emissions. As businesses work to reduce their carbon footprint, there are other emerging strategies to offset emissions using carbon credits. It is becoming increasingly strategic for large companies to purchase carbon credits through a carbon broker that manages complex carbon projects and organizes them into investment portfolios as carbon credits in one-ton increments. These portfolios can be organized by the amount and complexity of technology used for carbon capture; typically either Nature-Based Solutions (NBS) or Technology-Based Solutions (TBS). The negotiation looks at the complexities of carbon markets and the strategies used in carbon credit trading, highlighting the challenges and opportunities in achieving environmental sustainability goals in corporate settings.
Students will learn:
1. Strategic Negotiation Skills: Analyze the negotiation tactics and strategies employed by both Eclipse Climate and Alpha Air in the pursuit of their respective goals.
2. Basic Understanding Carbon Markets: Illustrate the complexities of the carbon market, its regulatory and voluntary markets, carbon credit pricing, and the importance of Nature-Based (NBS) and Technology-Based Solutions (TBS).
3. Environmental Sustainability in Business: Discuss the role of corporate social responsibility in combating climate change and how businesses can integrate sustainability into their operations.
