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Sustainability and Climate Policy - Coggle Diagram

- - - - Kyoto Protocol 1997
        
        Conference of the Parties (COP) COP1 in Berlin - 1992 Earth Summit in Rio- Follow up in Berlin 1995
        
        COP3 Kyoto 1997- Kyoto Protocol - legally binding treaty - Annex 1 to attain 5% emissions reduction
        
        Clean development mechanism (CDM)
        
        after Kyoto Protocol - it was resounding and optimistic sign- technical and structural
        
        COP15 Copenhagen 2009 produced improved, binding treaty - aspiration global warming be kept to below 2 degree celcius
        
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      - Svante Arrhenius- Swedish Scientist 1896- Fossil Fuel Combustion
        
        Gilbert Plass & Guy Callendar - Slight cooling trend observed in 1950 and 1960 due to aerosol
        
        1980- Temperatures started to rise significantly
        
        Intergovernmental Panel on Climate Change (IPCC) -1988 and later UN convened UNFCCC
        
        Original formulation of Nordhuas based on Dynamic Integrated Climate Economy in early 1990 suggested 3.5 degree C
        
        China & India have sharply increased emission in the past 2 decade.
        
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    - - 1) Carbon Pricing 2) Carbon taxes which impose a price per ton of CO2
        
        1) Japan Carbon tax is less than USD10 per ton 2) Sweden USD125 per ton 3) Many countries opted cap& trade schemes
        
        Carbon taxes raise revenue for Government . World Bank have 64 carbon pricing initiatives (taxes and emission -trading scheme)
        
        Renewable Portfolio Standards (RPS)- range of quota-based regulations that aim to increase supply of renewable electricity by requiring
        
        RPS have been deployed in 173 countries including Renewable Obligation in UK and Renewable Electricity Standard in US
        
        Feed in Tariffs offer guaranteed price per unit of electricity generated at which producers can sell their electricity for fixed period of time (usually 15 to 25 years)
        
        EV Purchase subsidies as part of initiatives to reduce carbon emission
    - - US run Regional Greenhouse Gas Initiative since 2009 - covers all large power plants across 10 northeast American states - Review Table 4.1 Carbon Tax - Cross Sectoral- A tax per ton of CO2 emitted disincentives emission and collects tax revenue that can be used for further climate measres
      - 2017- Trump admin to withdraw US from Paris Agreement - Hwever in 2020, American Pledge launched to commit Paris Agreement. This comprises 25 state governors, over 500 cities, 350 institutions higher education, 30 healthcare, 2300 Corp and Investment firms
      - Emission Trading Scheme- Cross Sectoral - emissions-trading scheme reduces emissions but allows sec-tors to trade with each other, so emissions are reduced where it is easiest and cheapest to do so
      - Renewable portfolio standard - Power Gen
        A requirement of a specific proportion of electricity generation coming from renewable sources
    - - GHG Protocal by World Resources Institute (WRI) and World Business CouncilSustainable Development (WBCSD) over 20 years ago as demand for an international standard for corporate GHG accounting and reporting
        
        Corp Standard 2021 - The GHG Protocol covers Scope 3 (Corporate Value Chain), Product Standard, Policy and Action Standard, The Mitigation Goal Standard
        
        GHG Protocol, 92% of Fortune 500 companies responding to the CDP used the GHG Proto-col directly or indirectly
- - - - The Chilean and UK high-level climate champions founded the Race to Net Zero in 2020
        
        Glasgow Financial Alliance for Net Zero in advance of COP26 in November 2021,
- - - - Companies are under increasing pressure to announce and implement net-zero targets encompassing emissions across all three scopes. But of over 4,000 corporate net-zero targets analyzed at the end of 2021, only 32% of corporate net-zero targets covered the entirety of Scope 3 emissions—and 25% of targets only partially cover Scope 3.
      - For many companies, particularly those facing climate risks that could result in stranded assets, Scope 3 emissions from the products and services they sell are by far the largest part of overall emissions, and thus the most vulnerable to potential climate transition risks* :fire:
        
        For example, the emissions embedded in the oil sold by an oil and gas company will typically be a much larger share of overall company emis-sions than the emissions from the company’s operations
        
        the emissions financed through loans to pollut-ing companies will likely be a much larger share of overall emissions for a bank than the emissions resulting from the operation of its offices or data centers
        
        Unfortunately, it is much harder to address double counting for Scope 3, as many companies have some degree of influ-ence over Scope 3 emissions and reductions. Because of this type of double counting, the GHG Protocol recommends that Scope 3 emissions should not be aggregated. : :warning:
        
        MSCI uses “de-duplication multipliers” to address double counting: They estimate the amount of would-be duplicated emissions across a portfolio, and adjust for it. When MSCI looks at the 12,000 companies in its master climate risk dataset
        
        Lombard Odier Invest-ment Managers, argue that a degree of Scope 3 double-counting is in fact desirable: “...we do not believe that double-counting is necessarily undesirable, from an inves-tor’s perspective. Carbon exposure reverberates through the supply chain and affects each company equally, even when the responsibility for these emissions may be shared” :checkered_flag:
- - - - More than half the world’s economic output—US$ 44tn of economic value generation—is moderately or highly dependent on nature (
      - Central Banks and Supervi-sors Network for Greening the Financial System (NGFS). Its first comprehensive report, published in April 2019, stated that “there are compelling reasons why the NGFS should also look at environmental risks [beyond climate change]
        
        In April 2021, the NGFS launched a Study Group on “Biodi-versity and Financial Stability,” and in June 2021, the Task-force on Nature-related Financial Disclosures (TNFD
        
        TNFD framework will adopt the four-pillars of the TCFD: governance, strategy, risk management, metrics, and targets
        
        Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) is an independent intergovernmental body that provides similar assessments on biodiversity and nature to governments
        
        Three-quarters of the land-based environment and about two-thirds of the marine environment have been signifi-cantly altered by human actions
        
        The recommendation : from a recent joint IPCC and IPBES workshop was clear: Mankind needs need to solve both the climate and nature crises, or it will not solve either
        
        More than a third of the world’s land surface and nearly three-quarters of freshwater resources are now devoted to crop or livestock production
        
        The value of agricultural crop production has increased by about 300% since 1970, raw timber harvest has risen by 45% and approximately 60 billion tons of renewable and non-renewable resources are now extracted globally every year—having nearly doubled since 1980
        
        Land degradation has reduced the productivity of 23% of the global land surface, up to US$577 billion in annual global crops are at risk from pollinator loss and 100–300 million people are at increased risk of floods and hurri-canes because of loss of coastal habitats and protection
        
        In 2015, 33% of marine fish stocks were being harvested at unsustainable levels; 60% were maximally sustainably fished, with just 7% harvested at levels lower than what can be sustainably fished
        
        Urban areas have more than doubled since 1992
        
        Plastic pollution has increased tenfold since 1980. 300–400 million tons of heavy metals, solvents, toxic sludge, and other wastes from industrial facilities are dumped annually into the world’s waters, and fertilizers entering coastal ecosystems
        
        Negative trends in nature will continue to 2050 and beyond in all of the policy scenarios explored in the report, except those that include transformative change—due to the projected impacts of increasing land-use change, exploitation of organisms, and climate change, although with significant differences between regions.
- - - - It was founded by three European central banks—those of the UK, France, and the Netherlands—but the network now counts 89 members from all continents.
        
        Macroprudential and Macroprudential supervision
        
        European Central Bank (European Central Bank, 2020), the Monetary Authority of Singapore (Monetary Authority of Singapore, 2020), and the Australian Prudential Regulation Authority (Australian Prudential Regulation Authority, 2020)
        
        In Risk management, firms are often asked to use some combination of scenario analysis and stress testing. In disclosure, the recommendations of the TCFD are increasingly seen as best practice by regulators and policymakers
        
        Stress tests are another micro-and macroprudential tool at the disposal of central banks. Such tests, which model the reaction of an individual financial institution or the whole financial system to a hypothetical shock
        
        European Central Bank (European Central Bank, 2020), the Monetary Authority of Singapore (Monetary Authority of Singapore, 2020), and the Australian Prudential Regulation Authority (Australian Prudential Regulation Authority, 2020)
- - - - Greta Thunberg, a young Swedish climate activist, millions took to the streets in 2019 to protest slow global progress on combating climate change, and these protests significantly raised the profile of climate change as a political issue
- - - - 1) Binary “green” assessment. 2) Lobbying 3) Asset bubbles 4) Sub-optimal targeting 5) Decreased quality - just buy the label