Climate Change 101: Key Concepts Everyone Should Understand

Lost in the climate conversation? Don't worry, we've got you covered. In just five minutes, you can learn the essential climate buzzwords everyone should know. This quick guide will help you understand the key terms driving the climate discussion.

ESG (Environmental, Social, and Governance)

ESG is a framework used to measure a company's performance in these three areas. It's becoming increasingly important for investors who want to support companies that are good for the planet and society. ESG factors help investors assess a company's impact on the earth. It's like giving businesses a report card on how they're doing.

Carbon Footprint

Your carbon footprint is the total amount of greenhouse gases (GHGs) you produce, measured in carbon dioxide equivalents. These emissions come from everyday activities like driving, using electricity, and even the food you eat. Reducing your carbon footprint can help mitigate climate change.?Simple steps like using public transport, conserving energy, and eating a plant-based diet can make a big difference

?Greenhouse gas emissions

Greenhouse gases (GHGs) trap heat from the sun in Earth’s atmosphere, maintaining the planet’s warmth. Since the industrial era, human activities have significantly increased GHG levels, leading to global warming and climate change. The key greenhouse gases include Carbon Dioxide (CO?) from burning fossil fuels, deforestation, and land-use changes. Methane (CH?) is released during fossil fuel extraction, waste management, and agriculture. Nitrous Oxide (N?O) and Fluorinated Gases used in cooling and refrigeration, also contribute to warming.

Net Zero

Net zero?refers to the balance between the amount of greenhouse gases (GHGs) emitted into the atmosphere and the amount removed from it. Achieving net zero means that any GHG emissions produced by human activities are offset by an equivalent amount of GHG removal, either through natural processes like reforestation or technological solutions like carbon capture and storage. The goal of reaching net zero is to stabilize global temperatures and prevent further climate change. This requires significant reductions in emissions across all sectors, including energy, transportation, and agriculture, as well as innovative strategies to remove existing carbon from the atmosphere.?

Climate Finance

Climate finance refers to the funding allocated to projects that reduce GHG emissions or help communities adapt to climate impacts. This can come from governments, international organizations, or private companies. Investing in climate finance is crucial for a sustainable future, as it supports initiatives like renewable energy projects and climate-smart agriculture.

Greenwashing?

This is when companies make misleading claims about how environmentally friendly their products or practices are. They might use labels, advertising, or packaging to give the impression that they are more sustainable than they are. This can trick consumers into thinking they are making eco-friendly choices when, in reality, the environmental benefits are exaggerated or nonexistent. Greenwashing undermines genuine efforts to protect the environment and can make it harder for people to identify truly sustainable options.

Conference of the Parties (COP)

COP ?is the United Nations’ annual climate change summit, held under the UN Framework Convention on Climate Change (UNFCCC) since 1995. A significant milestone was reached at COP21 in 2015 with the signing of the Paris Agreement. This conference unites all nations committed to the Paris Agreement, providing a platform to discuss strategies for combating climate change and to forge legally binding agreements that advance climate action.

Fossil Fuels

Fossil fuels are sources of non-renewable energy, formed from the remains of living organisms that were buried millions of years ago.?Burning fossil fuels?like coal and oil to produce energy?is where the majority of greenhouse gases originate. As the world has developed and energy demand has grown, we’ve burned more fossil fuels, causing more greenhouse gases to be trapped in the atmosphere and air temperatures to rise.

Renewable energy

Renewable energy is energy that comes from naturally replenished resources, such as sunlight, wind, waves, and geothermal heat. By the end of 2014, renewables were estimated to make up almost 28% of the world’s power-generating capacity, enough to supply almost 23% of global electricity. Because renewables don’t produce the greenhouse gases driving climate change, shifting away from fossil fuels to renewables to power our lives will put us on the path to a safe, sustainable planet for future generations.

??Thank you for reading this newsletter. We’ll be back next week with another insightful piece. If you want expert advice on your company's climate strategy and green financing, please visit our website or follow Lumina Africa Advisory for more.