Unit 2: Climate Change and Our Changing World Flashcards
What does the recent assessment of climate science show?
ublished by the International Panel on Climate Change (IPCC) in August 2021, shows that human activities are having unprecedented and irreversible effects on the global climate. Global surface temperatures have already risen 1.1o since the Industrial Revolution; and have increased more rapidly since 1970 than in any other 50-year period in the past 2000 years. Temperatures are likely to rise by more than 1.5oC above pre-industrial levels by 2040 and by more than 2oC later in the century without dramatic reductions in greenhouse gas emissions in the current decade.
The global climate is influenced by many interacting components which make up the climate system. It is a highly complex and interactive system consisting of five major components:
- Atmosphere
- Ocean
- Cryosphere: parts of the Earth predominantly covered by snow/ice
- Biosphere: component in which life occurs (terrestrial and marine), plays role in global carbon cycle
- Lithosphere: land surface
What are the impacts of Global Warming?
According to the IPCC’s 2018 Special Report on Global Warming of 1.5o, impacts include, but are not limited to:
- Agriculture
- Aquaculture
- Access to water
- Displacement and migration
- Health
- Property and infrastructure
- Security
Describe the risks for the finance sector arising from our changing environment?
What is a stranded asset? What are the challenges?
Stranded - i.e. assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities.
What is a carbon bubble? What are the challenges?
Hypothesised overvaluation of fossil fuel companies based on the thesis that the current valuation of their assets does not reflect the risk of them becoming stranded.
What is CCS and CCUS?
Carbon Capture and Storage (CCS) CO2 is captured from emissions at source, liquified and then stored underground in geological formations, for example in former oil and gas reservoirs.
Carbon Capture, Utilization and Storage (CCUS) CO2 is captured from emissions at source, utilised in areas including food and drink production, and the production of urea, and/or stored.
What is the IPCC?
The Intergovernmental Panel on Climate Change (IPCC) is the international body that provides regular assessments of the scientific basis of climate change. The Panel comprises 195 member countries, with thousands of scientists and experts contributing to the IPCC’s reports. The IPCC’s research and conclusions are used to develop evidence-based climate policies, as well as to underpin international climate negotiations.
What are the impacts of climate change?
- Higher Temperatures
- Increased frequency of extreme weather events
- Biodiversity Loss
- Rising Sea Levels
- Melting Sea Ice
- Retreating Glaciers
- Melting Ice Sheets
What is the Hothouse Earth?
If global warming exceeds 2°C, factors such as melting sea ice and the release of methane currently captured in permafrost could lead to a ‘tipping point’ of more rapid and irreversible climate change, sometimes referred to as ‘Hothouse Earth’.
What is the difference between weather and climate?
Weather’ is the term to describe the daily fluctuations in the state of the atmosphere. It is characterised by changes in temperature, wind and precipitation, among other weather elements. Changes can occur rapidly, hour by hour or over a period of several days to a week.
‘Climate’ refers to the average and spread in weather conditions for a particular area over a period of time. Usually this is over many years, defined by the World Meteorological Organization as 30 years.
What is Climate Change?
IPCC defines climate change as:
“A change in the state of the climate that can be identified (e.g., by using statistical tests) by changes in the mean and/or the variability of its properties and that persists for an extended period, typically decades or longer”.
What are the three main, naturally occuring greenhouse gases?
CO2
Methane
Nitrous Oxide
What did the World Bank track GHG emissions to be in 2018?
In 2018, they estimated total global emissions at approximately 46 million tons CO2e.
What is Scope 1, 2 & 3?
Scope 1: All direct greenhouse gas emissions from sources that are owned or controlled by the reporting organisation. In a financial services context, this would include emissions from buildings, etc, which in many cases will not be major emitters.
Scope 2: Indirect greenhouse gas emissions from the consumption of purchased electricity and power for heating, cooling and similar uses by the reporting organisation. In a financial services context, emissions are likely to be limited, at least in respect of other sectors of the economy that are major users of electricity and power.
Scope 3: Other indirect emissions that are the result of activities from assets not owned or controlled by the reporting organisation, and emitted through the organisation’s value chain. For many organisations, including financial services firms, Scope 3 emissions represent the majority of total emissions, but are the hardest to measure as they include items such as the transportation of products, the usage of products by consumers, waste disposal and – particularly relevant for financial services – emissions from investments owned or controlled by the reporting organisation.
