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International Journal of Production Research

Carbon trade finance:

a perspective of supply chain management

VIEW JOURNAL & SUBMIT

 

Guest editors

  • Peter Shi, Macquarie Business School, Macquarie University, Australia. Email: peter.shi@mq.edu.au

  • Xiangdong Li, Institute of New Economy and Global Supply Chain Management; School of Economics, Jiangsu University of Technology, China

  • Yu Gong, Southampton Business School, The University of Southampton, UK

  • V.G. Venkatesh, EM Normandie Business School, Metis Lab, France

  • Cong Cao, School of Management, Zhejiang University of Technology, China

  • Lenny Koh, Management School, the University of Sheffield, UK

  • Victor Shi, Lazaridis School of Business and Economics, Wilfrid Laurier University, Canada

 

Submission deadline
31st March 2024

Background
Supply chain carbon emissions have become a significant issue worldwide, and firms are increasingly aware of the need to reduce their carbon footprint (Bredin, Hyde, and Muckley 2014; Wu and Kung 2020). To meet this challenge, businesses are exploring innovative ways to improve the environmental sustainability of their supply chains (Cong, Pang, and Peng 2020; Tang and Yang 2020; Wu and Kung 2020; Yang, Chen, and Ji 2018; Shou et al., 2020). One area of particular interest is the integration of carbon finance with supply chain management, which can help companies reduce their emissions while improving their financial performance (Semieniuk et al., 2021). In addition to the challenges and opportunities brought by Industry 5.0 to supply chain resilience, integrating carbon finance and supply chain management also presents both opportunities and challenges (Maddikunta et al. 2022).


Carbon finance may incentivize companies to reduce carbon emissions and improve environmental sustainability (An et al. 2021; Cui, Wang, and Wang 2020). This can lead to a more resilient supply chain by reducing the risks of climate-related disruptions and improving the company's reputation among environmentally conscious consumers. Furthermore, carbon finance can provide additional revenue streams for companies that can reduce their carbon footprint, further enhancing their resilience by diversifying their income sources (Kang et al. 2019).


On the other hand, the integration of carbon finance and supply chain management also poses challenges. Companies may struggle to measure and report carbon emissions accurately, making it challenging to participate in carbon markets and access financing opportunities (Vickers et al. 2009). Additionally, carbon finance can introduce new risks and uncertainties to the supply chain, such as fluctuations in carbon prices and regulatory changes related to carbon emissions (Cong et al. 2020; Cui et al. 2020).


Integrating carbon finance, sustainability, and technology innovation presents challenges and opportunities for companies seeking to enhance their supply chain operational performance and support resilience significantly. Companies must carefully consider the potential benefits and risks of using carbon finance while also adopting a holistic approach to supply chain management and leveraging the principles of Industry 5.0 to improve their resilience and better respond to the challenges of today's complex and ever-changing business environment. By doing so, businesses can position themselves for long-term success and develop effective strategies for managing carbon emissions and participating in carbon markets. 


Amidst this background, the special issue would invite research on operations strategies and supply chain carbon finance. Together with investment analysis, it is interesting to explore the strategy and transactions in emission projects that would add new perspectives to operational risk mitigation strategy. The new views would extend debates on mechanisms of integrating carbon finance into the firm’s overall operations strategy, which can/would be the key element to modern-age firms.

Topics of interest for this special issue  (but are not limited to) : 

  1. Which circular economy business models best integrate carbon finance and supply chain management to optimize resource usage and minimize waste? How can companies use carbon finance to incentivize and finance the development of sustainable product innovations that support a circular economy and reduce carbon emissions across the entire supply chain? 

  2. Which operation and supply chain management gains can be achieved by leveraging carbon finance to incentivize suppliers to reduce emissions and improve environmental performance? 

  3. Which trade-offs do companies need to consider when balancing carbon finance's potential benefits against the risks and costs associated with participation in carbon markets and implementing carbon reduction initiatives? 

  4. How can carbon finance be integrated into supply chain management to enhance resilience and sustainability? What are the key challenges and opportunities of using carbon finance in supply chain management, and how can they be effectively managed? 

  5. What are the critical trade-offs between using carbon finance and achieving supply chain resilience and sustainability, and how can they be balanced, especially for those industries linked to fossil fuel production and consumption? 

  6. How can the Internet of Things (IoT) be leveraged in supply chain management to track and reduce carbon emissions? 

  7. What is the cost and effort required to advance supply chain sustainability within the framework of carbon finance? How can carbon finance be integrated to address the opportunities and challenges?

  8. What are the specific challenges and opportunities for small and medium-sized suppliers in using carbon finance, how can they be supported to participate in carbon markets, and what challenges need to be overcome?

  9. How can blockchains enhance transparency and traceability in carbon markets and supply chains, and what are the potential benefits and challenges of using this technology? 

  10. What are the potential benefits and challenges of using Artificial Intelligence (AI) and advanced data analysis to manage carbon emissions and support carbon finance in supply chain management for the transportation and logistics industry? 

  11. What are the potential risks and benefits of adopting carbon finance and carbon neutrality strategies in global supply chains, and how can supply chain assets (physical and digital) better be orchestrated to adapt to the changes?

  12. What new business models and strategies can companies develop to effectively incorporate carbon finance and sustainable product innovations into their supply chain management practices? What are the potential benefits and challenges of doing so?

Submission and review process 
The submission process and papers must adhere to the standard author guidelines of Taylor & Francis, which can be found here.
All submissions to the special issue should be submitted via the Taylor & Francis online submission system.

 

When you submit your paper to the special issue, please indicate that your article is for the special issue 

"carbon trade finance: a perspective of supply chain management", otherwise your submission will be handled as a regular manuscript. 


Papers submitted to the special issue will be subjected to a normal thorough double-anonymous review process. 

 

References

An, Simin, Bo Li, Dongping Song, and Xue Chen. 2021. "Green Credit Financing versus Trade Credit Financing in a Supply Chain with Carbon Emission Limits." European Journal of Operational Research 292(1):125–42. doi: 10.1016/j.ejor.2020.10.025.


Bredin, Don, Stuart Hyde, and Cal Muckley. 2014. "A Microstructure Analysis of the Carbon Finance Market." International Review of Financial Analysis 34:222–34. doi: 10.1016/j.irfa.2014.03.003.


Cong, Jing, Tao Pang, and Hongjun Peng. 2020. "Optimal Strategies for Capital Constrained Low-Carbon Supply Chains under Yield Uncertainty." Journal of Cleaner Production 256:120339. doi: 10.1016/j.jclepro.2020.120339.


Cui, Herui, Ruoyao Wang, and Haoran Wang. 2020. "An Evolutionary Analysis of Green Finance Sustainability Based on Multi-Agent Game." Journal of Cleaner Production 269:121799. doi: 10.1016/j.jclepro.2020.121799.
 

Kang, Kai, Yujie Zhao, Jing Zhang, and Chen Qiang. 2019. "Evolutionary Game Theoretic Analysis on Low-Carbon Strategy for Supply Chain Enterprises." Journal of Cleaner Production 230:981–94. doi: 10.1016/j.jclepro.2019.05.118.


Ltd, ICB-InterConsult Bulgaria. 2021. "Conceptual Approaches of Industry 5.0. Correlative Elements with Supply Chain Management 5.0." Revista de Management Comparat Internațional 22(5):622–35.


Maddikunta, Praveen Kumar Reddy, Quoc-Viet Pham, Prabadevi B, N. Deepa, Kapal Dev, Thippa Reddy Gadekallu, Rukhsana Ruby, and Madhusanka Liyanage. 2022. “Industry 5.0: A Survey on Enabling Technologies and Potential Applications.” Journal of Industrial Information Integration 26:100257. doi: 10.1016/j.jii.2021.100257.


Semieniuk, Gregor, Emanuele Campiglio, Jean-Francois Mercure, Ulrich Volz, and Neil R. Edwards. 2021. “Low-Carbon Transition Risks for Finance.” WIREs Climate Change 12(1):e678. doi: 10.1002/wcc.678.


Shou, Y., Shan, S., Chen, A., Cheng, Y. and Boer, H. (2020), "Aspirations and environmental performance feedback: a behavioral perspective for green supply chain management", International Journal of Operations & Production Management, Vol. 40 No. 6, pp. 729-751.


Tang, Ruihong, and Lei Yang. 2020. "Impacts of Financing Mechanism and Power Structure on Supply Chains under Cap-and-Trade Regulation." Transportation Research Part E: Logistics and Transportation Review 139:101957. doi: 10.1016/j.tre.2020.101957.


Vickers, Ian, Prachant Vaze, Leah Corr, Eva Kasparova, and Fergus Lyon. 2009. "SMEs in a Low Carbon Economy: Final Report for BERR Enterprise Directorate." Retrieved February 22, 2023 (https://eprints.mdx.ac.uk/4163/).


Wu, Tao, and Chih-Chun Kung. 2020. "Carbon Emissions, Technology Upgradation and Financing Risk of the Green Supply Chain Competition." Technological Forecasting and Social Change 152:119884. doi: 10.1016/j.techfore.2019.119884.

 

 


Guest editor bio's
Peter Shi is a Chartered Fellow of the Chartered Institute of Transport and Logistics, a senior academic at Macquarie Business School and director of Centre for Transport Logistics and Supply Chain Management (Chongqing, China). He has published over 70 journal articles, including over 45 ABDC: A/A*; ABS: 2/3/4 papers, in relation to operations, logistics and supply chain international journals, such as IJOPM, TRE, SCM, IJPE, IJPR, PPC, IEEE Transactions on Engineering Management, ANOR, TFSC, TP, MP, IJPDLM, JBIM, IJLM, IJDRR, Supply Chain Management Review, etc. 


Xiangdong Li is the Dean of School of Economics and Institute of ‘New Economy and Global Supply Chain Management’, Jiangsu University of Technology. He has published over 40 journal articles. 
V G Venkatesh is an Associate Professor in supply chain management with EM Normandie Business School, France. He is a Certified Supply Chain Professional (CSCP) from APICS-SCC and having global industry and academic background. His teaching and research interests are in global procurement, logistics, sustainability, and technology applications. He is the visiting faculty to reputable global institutions teaching in Executive MBA and corporate programs.


Yu (Jack) Gong obtained his PhD at the University of Exeter (2013-2016), MSc in Logistics and Supply Chain Management at Cranfield University (2009-2010). He has publications in high quality journals such as International Journal of Operations & Production Management, International Journal of Production Economics, International Journal of Production Research, Industrial Marketing Management, Transportation Research Part D: Transport and Environment, Business Strategy and the Environment, and has published several Ivey teaching cases. Prior to his academic career, Dr Yu (Jack) Gong worked in management consulting firms in both Malaysia and China, providing services to various large scale multinational companies for three years. He has extensive project management experiences serving companies including 3M, Nestle Malaysia, Zuellig Pharma, TCL Corporation, Power Construction Corporation of China (PCCC) and BMW Brilliance.


Cong Cao is engaged in the research of e-commerce information systems, operation management, trust evaluation and management, and user behaviour analysis as an associate professor at the School of Management at the Zhejiang University of Technology in China. In the past four years, as the lead author, Dr Cao has published 30 papers, including five A*/A publications. In addition, he has served as track/session chair and PC Member for ICSS 2021-2022, WHICEB 2021-2023, INFORMS 2023, AMCIS 2020-2022 and ACIS 2018, respectively.


Lenny Koh, BEng (Hons), PhD, FRSA, is a Chair Professor in Operations Management, Founders and Directors of the Logistics and Supply Chain Management (LSCM) Research Centre at the Management School & the Faculty’s Centre for Energy, Environment and Sustainability (CEES), at The University of Sheffield, UK. She is also the co-founder of Supply Chain Management and Information Systems (SCMIS) Consortium, a global network of leading academic and practitioners driving research and knowledge exchange on supply chain and information systems. A World leading mind recognised amongst FRSs and Nobel Laureates within the University, Professor Koh is a Senior Chair Professor, an internationally renowned and established authority in supply chain especially on low carbon and sustainability, with a high H-index (World number 2) and high research income generation in her discipline internationally. She is active in leading a 2022 Futures initiative advancing resource efficiency and supply chain disciplines, navigating a new translational model for connecting invention/basic science at lower TRL to higher TRL.


Victor Shi holds a Ph.D. in Operations Management from Washington State University. He is currently a Full Professor in the Lazaridis School of Business and Economics at the Wilfrid Laurier University. He served twice as the Chair of the Management Science Division, Administrative Sciences Association of Canada. He has published more than 70 papers in journals such as Production and Operations Management and European Journal of Operational Research. His research has been supported mainly by Natural Sciences and Engineering Research Council of Canada

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