Cheat sheets content 1-5 Flashcards
How old is the human-caused warming?
150 years.
How long did the last ice age last and how long ago
Lasted 20,000 years and ended 10,000 years ago
How much energy is emitted by Sun
340 W /m2
How much solar energy is absorbed by earth?
238 W / m2
How much sunlight reflects back from earth
30%
The most importang GHG in the atm + next most imp
- Water vapor
- Methane
When did CO2 begin increasing
start of 19th century
Current concentration of methane
1.9 ppm in 2020
Methane GWP
28
Which SSP is the most positive, and the most negative?
SSP1 - most positive
SSP5 - most negative
CCUS meaning
Carbon Capture Utilisation and Storage
Nature-based solution def
Nature-Based Solutions – Actions to protect, manage, or
restore ecosystems that address societal and human
challenges (reforestation, mangrove restoration, etc.)
4 ecosys types
- Supporting services: are fundamental conditions that
enable the existence of other services - Provisioning services: generate resources e.g.food/water
- Regulating services: control ecological processes, e.g. wetlands do flood control, forests sequester carbon)
- Cultural services: The non-material benefits &
enjoyments humans derive from ecosystems
LCA + its steps
Life Cycle Assessments (LCA): Cradle-to-grave
assessment: Goal/Scope>Inventory analysis>Impact
assessment>Interpretation
Where physical R types were defined and what are those?
In TCFD
Acute and chronic (sea level rise, temperature rise)
Types of transition R
Policy & legal ((e.g. govt mandate on closure))
Technology (tech devt of renewable energy and cheapening batteries)
Market
Reputation (consumer pressure for household goods)
Exposed VS vulnerable
Exposure - assets in vulnerable place
Vulneragility - how likely is the asset to get hurt from the danger
Deadline of net zero emissions for govts
2050
Types of indirect risks
Supply chain risk
Liability risk - R of firm suffering financially after being legally liable
Insurers pulling out the coverage
3 classic policy solutions for GHG emissions
Carbon tax
Cap and trade
Price on emissions
Just transition def
Helping people & communities smoothly
switch to cleaner & greener ways of doing things, without
leaving anyone behind
When consensus on human influence on climate was formed?
1980s
Formation of IPCC date
1988
UNFCC - when was establilshed and what it is
est in 1992 at the Rio Summit
UN body dedic to CC. First worlwide climate agreement
COP what it is
Conference of Parties - summits of UNFCCC
When the COP 1 was and where
1995 Berlin
Which year and at which COP the Kyoto protocol was established?
1997, COP3
What is Kyoto about?
Require high-income countries reduce emissions by 5% below 1990 levels by 2008-2012
developing countries were not subject to any kind of emissions reduction obligations
At which COP, whih year the paris agreement was established
COP21
2015
is Paris binding?
Not, it relies on peer pressure
Who proposed NDCs, and where do you submit an NDC?
NCDs proposed by Paris. Submitted to UNFCCC and periodically re-evaluated
Ratchet mechanism
Paris uses ratchet mech - countries tighten their NDCs every 5 years
Carbon tax def
Price per ton of CO2 emitted to pay
Cap and trade def
Total emissions are capped, but emission permits can be traded
RSP
Renewable Standards Portfolio - range of quota-based regulations, that oblige electricity producers to source a portion from renewable energy soures
Feed-in tariff
offers a guaranteed price/unit of electricity
generated at which producers can sell electricity for a fixed period. That is to promote energy generation from renewable sources
GHG protocol - who established and what it did
est by WRI (World Resource Institute) & WBCSD
Introduces direct + indirect emissions + 3 scopes
Dir vs indir emissions
Direct: Emissions from sources that are owned or controlled by
the reporting company
* Indirect: Emissions that are a consequence of the activities of
the reporting company but occur at sources owned or controlled by
another company.
3 scopes
Scope 1: Direct emissions from owned or controlled sources
* Scope 2: Indirect emissions from the generation of purchased
electricity
* Scope 3: Indirect emissions that occur in the value chain of the
reporting company including both upstream and downstream
Should scope 3 emissions be aggregated?
GHG protocol says no, because of double counting
EU taxonomy def + what it does
Green taxonomy that List of economic activities considered “green”
* EU Taxonomy sets performance thresholds (technical screening
criteria) for economic activities by sector and sub-sector
5 Green taxonomy drawbacks:
- Binary “green” assessment:
Not all assets are simply green or not green, there are some with
“shades of green” - Lobbying - Lobbying can influence the creation and implementation of green taxonomies, leading to watering down of criteria
- Asset Bubbles - As investors rush to buy “green” assets, there may be overvaluation of certain industries or technologies.
- Sub-optimal targeting - criteria of green taxonomy may sometimes miss the mark in terms of targeting the most impactful environmental improvements.
- Decreased Quality - with wider adoption, could be an incentive to lower the bar for what qualifies as “green”
Climate action 100+ what it is
Climate Action 100+: An investor coalition – 575 members
& US$ 54 trillion in AUM – Targeting 100 most heavily
emitting publicly listed companies
When was TNFD established
June 2021
4 pillars of TNFD
Governance
Strategy
Risk Management
Metrics & Targets
Sustainable Finance
Sustainable Finance: Any kind of financial activity that
takes sustainability into account
def Green Finance
Sustainable finance focused on
environment-related risks & opportunities (but not
necessarily climate change)
Climate Finance def
Climate Finance: Financial flows relating to climate change
– mitigation and adaptation
Green bonds def
Green bonds (separately labeled, ring-fenced) are bonds
whose proceeds are earmarked for environmental projects
4 core comonents of Green Bonds Principles
Use of proceeds
Process for project evaluation and selection
Management of proceeds
Reporting
Social bonds def
bonds with earmarked proceeds for
projects that will bring social benefits
Sus bonds def
Sustainability Bonds = Green + Social Bonds
Green loans def
Green Loans: Loans that have been made for
environmental & climate-related projects
Green Loan Principles
Use of Proceeds - Clearly defined green projects
Process for Project Evaluation and Selection - The borrower should communicate the project’s environmental sustainability objectives and selection criteria.
Management of Proceeds
Proceeds must be tracked properly, often using an internal system to ensure they go to green projects.
Reporting
Borrowers should report annually on how proceeds are used, including project descriptions, impact metrics (e.g. GHG reductions), and allocation status.
Where are green loans concentrated?
Majority of g loans to go clean transportation & energy, also power sector
Sus linked bonds def
Sustainability-linked bonds, the coupon paid is linked to the
issuer firm’s achievement of sustainability targets
Sus linked loan def
Sustainability-linked loans, the interest rate is linked to a
company’s sustainability benchmarks
Sus linked Bond Principles
SLBP has 5 core components:
Selection of KPIs,
Calibration of Sustainability Performance Targets,
Bond characteristics,
Reporting,
Verification
Green car loan def
financing env-friendly cars
Green mortgage
Mortgage for energy-efficient homes
Sust credit card
donate a small % of purchases.
1992 Earth Summit Rio - outcomes
The 1992 Earth Summit in Rio de Janeiro, Brazil, introduced several new UN initiatives and bodies, including the UNFCCC later called Conference of Parties (COP).
