A Startup Company in Supply Chain Crisis Caused by Greenhouse Gas Emission Regulations

Abstract

“The UAE consensus,” reached at the COP28 climate summit in 2023, acknowledges the need to phase down “unabated” coal burning (United Nations Climate Change 2023). To help understand the potential impact of the UAE consensus on fossil fuel and related industries, the authors present a case study based on actual events after China joined the Paris Climate Agreement (United Nations Climate Change 2025). The case provides insights into the multifaceted impacts of greenhouse gas emissions regulations on fossil-fuel stakeholders, the environment, and global trade. Specifically, it illustrates how a startup export company has pivoted in the face of unexpected supply chain disruptions caused by environmental regulations. Students practice using management accounting and Excel data analytics tools to help the CEO plan for the future as the company pivots to high-value-added products and markets. Finally, the case highlights the importance of agility and resilience for entrepreneurs in an uncertain global economy.Data Availability: Data are available to subscribers to Issues in Accounting Education.JEL Classifications: F18; K32; L16; L26; L65; M13; M41.