Explore our extensive glossary of Sustainability terms. Enhance your understanding of industry terminology
and stay informed on essential concepts in the field.
The 45Z Clean Fuel Production Credit refers to a proposed tax credit in the United States aimed at incentivizing the production of clean fuels. This credit is part of the federal government’s efforts to promote renewable energy and reduce greenhouse gas emissions. The “45Z” designation likely refers to the section of the Internal Revenue Code where this tax credit would be codified. In this case, it would be Section 45Z, which would establish the framework for the credit. The Clean Fuel Production Credit would provide financial incentives to producers of clean fuels, such as hydrogen, renewable diesel, sustainable aviation fuel, and other low-carbon alternatives to traditional fossil fuels. These credits would help offset the costs of producing clean fuels, making them more competitive in the market and encouraging their adoption by consumers and industries. By supporting the production of clean fuels, the 45Z Clean Fuel Production Credit aims to accelerate the transition to a low-carbon economy, reduce reliance on fossil fuels, and mitigate the impacts of climate change. This tax credit is part of broader efforts to promote sustainable energy development and achieve emissions reduction targets
An economic model that offers customers the opportunity to use goods and services temporarily instead of owning them outright. The access economy promotes the temporary rental of assets, resulting in environmental advantages by reducing overall consumption. Businesses like AirBnb Uber serve as prime illustrations of the access economy in action.
Renewable energy tariffs with additionality provide extra environmental benefits, not just by offering green energy but also by including carbon offsets.
This process involves breaking down organic materials, like sewage, animal waste, and food scraps, into carbon dioxide, hydrogen sulfide, and water. It’s carried out by bacteria and requires oxygen to occur.
An air-source heat pump is a system that takes natural heat from the outdoor air through refrigeration pipes. It intensifies this heat using a vapor compression process and then delivers it into buildings for heating and hot water, all without the need to burn fossil fuels.
A new geological age is being discussed, one that’s marked by the changes humans have made on Earth. Some argue we might already be in this era, shifting from the Holocene, because of our harmful effects on the planet’s climate and resources.
“Anthropogenic” refers to processes, activities, or environmental changes that are a result of human activities. The term is commonly used in the context of human-induced effects on the environment, climate, ecosystems, and natural resources. Anthropogenic factors can include various human activities such as industrial processes, agriculture, deforestation, urbanization, and the burning of fossil fuels. For example, anthropogenic climate change refers to changes in the Earth’s climate system primarily caused by human activities, particularly the emission of greenhouse gases like carbon dioxide and methane. Similarly, anthropogenic pollution refers to pollution that originates from human activities, leading to environmental degradation. Understanding and addressing anthropogenic impacts are crucial in the fields of environmental science, climate science, and ecology, as human activities increasingly influence the planet’s natural systems and ecosystems. Efforts to mitigate and adapt to anthropogenic changes often involve sustainable practices, conservation measures, and policies aimed at reducing human impacts on the environment
The Atlantic Meridional Overturning Circulation (AMOC) is a large ocean current system that carries warm water from the tropics northwards into the North Atlantic.
An autonomous vehicle, also called a ‘driverless’ or ‘self-driving’ car, relies on artificial intelligence, sensors, and a global positioning system to perceive its surroundings and navigate without human control.
While several prominent companies have initiated the phase-out of single-use plastic items from their operations since the start of 2017, sustainability experts, including Committee on Climate Change chair Lord Deben, have raised concerns about the growing demand for plastic-free products without considering the reasons for plastic use. These reasons often include protection from damage during transportation and the prevention of food waste through extending product shelf life. For example, a wrapped cucumber lasts an average of three days longer than an unwrapped one, retaining 2% more of its weight due to reduced evaporation. In addition, health companies highlight the challenge of removing single-use plastic packaging used to maintain the sterility of surgical equipment and ensure the quality of medicines. Some disabled consumers rely on single-use plastic straws and wet wipes for their daily needs. Moreover, plastic has historically been a safer and more cost-effective alternative to paper, glass, or cardboard for many companies. Companies such as Surfdome, an online sportswear retailer, have reported a 110% increase in packaging costs since committing to go plastic-free.
The National Grid uses a tool to manage the real-time balance of electricity supply and demand. This tool operates in 30-minute trading periods each day, ensuring that supply and demand are kept in equilibrium.
Battery Energy Storage Systems (BESS), are rechargeable batteries that can store energy from different sources and discharge it when needed. BESS consist of one or more batteries and can be used to balance the electric grid, provide backup power and improve grid stability.
The Department for Business, Energy & Industrial Strategy is a government department responsible for matters related to business, industrial strategy, science, innovation, energy, and climate change.
Building Information Modelling (BIM) is a digital method for managing construction project information, optimizing collaboration and enhancing asset value over time.
Biodegradable materials naturally break down over time thanks to microorganisms, but it’s important to note that their breakdown can vary in speed, method, and impact, so they shouldn’t be released into the environment without control.
Biodiversity means having many different types of animals and plants in a place. It’s crucial for healthy ecosystems because it gives us food, materials, and helps the economy.
A technology that can help reduce greenhouse gases by creating negative carbon dioxide emissions. It combines using bioenergy with capturing and storing carbon underground (CCC).
Bioethanol is an alcohol fuel made through sugar fermentation from crops like sugarcane or maize. It can be used in fuel cells to generate electricity and is considered a sustainable alternative to gasoline.
Biofuels are fuels made from living matter, like plants and animal waste. They include ethanol, biodiesel, and biogas. These fuels are considered good alternatives to fossil fuels because they can be renewed as fast as they’re used and have cleaner combustion.
Biogas is a renewable energy source that contains methane, created by bacteria breaking down plants and animal waste. It can be used for generating electricity, providing hot water and steam for heating, or as a vehicle fuel.
Biomass, like wood and crops, can become fuel and is considered renewable. It’s sustainable and carbon-neutral because the carbon released when burned is offset by what it absorbed during growth through photosynthesis. Biomass power plants use it to create electricity, but there’s debate in the sustainability community about its environmental impact.
Biomimicry is when we copy nature to create things like materials, buildings, and systems. By doing this, we can find eco-friendly answers to our problems. For instance, if we design a building like a termite mound, it can naturally cool itself, saving energy.
Bioplastics are eco-friendly plastics made from renewable sources like plants. They are typically more sustainable and emit fewer greenhouse gasses than traditional plastics. But, it’s worth noting that not all bioplastics break down easily.
“Blended finance” refers to the strategic use of public and private funds, often in collaboration, to mobilize additional capital for projects that contribute to sustainable development goals. This approach combines concessional (below-market-rate) finance from public or philanthropic sources with commercial finance from private investors. The goal is to address market failures and attract private sector investment to projects that might otherwise be considered too risky or financially unattractive. Blended finance mechanisms are commonly used in sectors such as infrastructure, renewable energy, healthcare, and education. By blending different types of capital, it seeks to unlock investments that generate both financial returns for investors and positive social or environmental outcomes. Public or concessional finance serves as a catalyst, reducing risk and attracting private investors who seek financial returns alongside measurable social or environmental impact. This approach aligns with the broader agenda of sustainable finance and impact investing, where investors aim to achieve positive social and environmental outcomes alongside financial returns. Blended finance is often employed in the context of achieving the United Nations’ Sustainable Development Goals (SDGs) by leveraging private sector resources to address global challenges.
A blended wing body (BWB), also known as a blended body, hybrid wing body or a lifting aerofoil fuselage, is a fixed-wing aircraft having no clear dividing line between the wings and the main body of the craft. The aircraft has distinct wing and body structures, which are smoothly blended together with no clear dividing line. Blended-wing body aircraft have the potential to significantly reduce fuel demand and increase global reach. Moving forces and cargo quickly, efficiently, and over long distance is a critical capability to enable national security strategy.
A blockchain is like a shared digital ledger that uses computer programs to securely record and verify transactions. It’s used by many people, and once data is in there, it can’t be changed because it’s linked together like a chain. The idea became well-known in 2008 when Bitcoin, a digital currency, was created.
Blue Economy (2.0) means focusing on promoting climate-resilient activities and sustainable development in coastal areas by a particular government.
The Building Research Establishment Environmental Assessment Method (BREEAM) is the world’s oldest and most recognized system for evaluating, grading, and certifying a building’s sustainability. BREEAM focuses on promoting awareness among building owners, occupants, designers, and operators about the advantages of adopting a sustainable approach.
This refers to the maximum power a generator can produce when it’s operating at its full capacity.
A “carbon budget” is the total amount of carbon dioxide emissions that can be released without exceeding a specific global warming target, like 1.5 or 2 degrees Celsius above pre-industrial levels. It helps guide efforts to limit climate change by setting an emissions limit.
Carbon capture and storage (CCS) is a technology that catches carbon dioxide from places like power plants and keeps it underground to prevent it from going into the air. It’s essential for reducing emissions in industries like steel and cement production.
A “carbon credit” is like a permission slip for companies to emit a certain amount of CO2 or an equivalent greenhouse gas. These permits are given out by governments, but they reduce the number they give over time to make pollution costlier.
Carbon dioxide emissions are those stemming from the burning of fossil fuels and the manufacture of cement. They include carbon dioxide produced during consumption of solid, liquid, and gas fuels and gas flaring.s
Carbon dioxide removal (CDR) encompasses various methods designed to extract CO2 from the atmosphere. This broad category includes techniques such as direct air capture (DAC) with long-term storage, soil carbon sequestration, biomass carbon removal and storage, enhanced mineralization, ocean-based CDR, and afforestation or reforestation. It’s important to note that CDR does not involve point-source carbon capture associated with fossil fuel or industrial processes. When combined with ongoing mitigation efforts and other carbon management strategies, CDR plays a crucial role in addressing emissions from sectors that are difficult to decarbonize, such as agriculture and transportation, and in removing historical CO2 emissions from the atmosphere.
A “carbon footprint” is the sum of all the greenhouse gasses released into the air due to human activities. It can be calculated for products, services, individuals, companies, or entire nations. Carbon footprints are typically measured in carbon dioxide equivalents (CO2e).
Carbon intensity measures the amount of carbon emissions generated for each unit of economic output (Gross Domestic Product or GDP). Lowering carbon intensity means producing less pollution for each unit of economic activity.
A carbon market is a system that allows for the trading of carbon credits or emissions allowances with the aim of reducing greenhouse gas emissions. It operates as a market-based mechanism to incentivize companies, industries, and countries to limit their carbon dioxide (CO2) and other greenhouse gas emissions. In a carbon market, entities are assigned a certain amount of emissions allowances. If a company emits fewer greenhouse gases than its allocated allowances, it can sell the excess allowances to other entities that exceed their limits. This creates a financial incentive for businesses to reduce their emissions, fostering a more sustainable and low-carbon economy. There are two main types of carbon markets: Cap-and-Trade: Also known as emissions trading systems, this approach involves setting a cap on the total allowable emissions and allowing companies to buy and sell emissions allowances within that cap. Offset Programs: These programs enable entities to earn carbon credits by investing in projects that reduce or capture emissions. These credits can then be sold or used to offset the buyer’s own emissions. Carbon markets are a key component of international efforts to combat climate change and are often implemented at both national and regional levels. The concept is integral to creating economic incentives for emission reductions while promoting the transition to a low-carbon future.
“Carbon negativity” means that an organization or entity has lowered its carbon footprint to a point where it removes more carbon dioxide from the atmosphere than it adds, effectively helping to reduce the overall amount of CO2 in the atmosphere.
Carbon offsets are a mechanism to mitigate greenhouse gas emissions by investing in projects or activities that reduce or remove an equivalent amount of carbon dioxide (CO2) or other greenhouse gases from the atmosphere. These projects can include activities such as reforestation, renewable energy projects, methane capture, or energy efficiency initiatives. The idea is that by compensating for one’s own carbon footprint through the purchase of offsets, individuals, companies, or governments contribute to global efforts to combat climate change. Offsets are often traded on carbon markets, providing a financial incentive for projects contributing to emissions reduction and sustainable development.
A “carbon pricing system” is a way to motivate polluters to cut their greenhouse gas emissions by making them pay for the CO2 they release into the air. It’s typically implemented through either a carbon tax or a cap-and-trade system, where companies have a set limit on the emissions they can produce, and these limits decrease over time.
A “Carbon Price Floor” is a policy that places a tax on fossil fuels, encouraging investments in low-carbon energy sources. It sets a minimum price on greenhouse gas emissions from power generation to ensure a consistent carbon price.
“Carbon sequestration” refers to the lasting removal and storage of carbon dioxide from the air in places like oceans, forests, or soils. It helps combat global warming and prevent severe climate changes. An example is the way trees and plants absorb carbon dioxide during photosynthesis and release oxygen.
A carbon strip typically refers to a thin, elongated piece of material primarily composed of carbon. These strips can vary in thickness, width, and length depending on their intended application. Carbon strips are commonly used in electrical applications, such as in resistors, where their conductive properties and resistance to heat make them suitable for controlling the flow of electricity. They can also be used in various other industrial applications, including reinforcement in composite materials, heating elements, and as components in sensors and electrodes.
A carbon tax is a tax levied on the carbon emissions required to produce goods and services. Carbon taxes are intended to make visible the “hidden” social costs of carbon emissions, which are otherwise felt only in indirect ways like more severe weather events.
To become carbon-neutral, an organization must balance out the carbon emissions it creates during its operations by either offsetting them or storing an equivalent amount of carbon. This commonly involves buying carbon credits.
A “chain of custody” ensures that, for instance, fair-trade coffee can be traced from the farm to the consumer, guaranteeing its ethical production and distribution.
A circular economy is a system where resources are used efficiently. Instead of the old way of taking, making, and throwing things away, it’s about making sure materials are used at their best throughout their life, and then recycling or reusing them when they’re done. This way, we get the most value out of our resources.
Clean energy is derived from renewable, sustainable sources with minimal environmental impact and produces little to no greenhouse gas emissions during generation. Unlike traditional fossil fuels such as coal, oil, and natural gas, which contribute to air and water pollution and are finite resources, clean energy sources are abundant, environmentally friendly, and continuously replenished. Examples of clean energy sources include solar, wind, hydropower, geothermal, and biomass. These sources offer a viable alternative to conventional energy sources, helping to mitigate climate change, reduce dependence on fossil fuels, and promote sustainable development.
Climate change is a significant, long-term alteration in global weather patterns and average temperatures. It’s notable because the temperature increase since the Industrial Revolution has been much faster compared to historical climate change. This rapid warming can result in severe weather events like droughts, rising sea levels, and melting glaciers.
Climate financing refers to the mobilization and allocation of financial resources, both public and private, to support projects, initiatives, and activities aimed at addressing climate change challenges and promoting sustainability. These funds are directed towards mitigation efforts (reducing greenhouse gas emissions) and adaptation measures (building resilience to climate impacts). Climate financing is crucial in supporting projects such as renewable energy development, sustainable agriculture, and climate resilience infrastructure. The goal is to facilitate the transition to a low-carbon, climate-resilient economy and help countries meet their climate-related targets and commitments, especially in the context of international agreements like the Paris Agreement.
Climate risk refers to the potential negative impacts or adverse consequences that arise from climate-related events or changes in climatic conditions. These risks can manifest in various forms, including physical risks, transition risks, and liability risks. Physical Risks: These risks stem from the direct and indirect impacts of climate-related events, such as extreme weather events (e.g., hurricanes, floods, wildfires), sea-level rise, changes in temperature and precipitation patterns, and other climate-related phenomena. Physical risks can lead to property damage, infrastructure disruption, supply chain interruptions, and loss of life, posing financial and operational challenges to businesses and communities. Transition Risks: Transition risks arise from the shift towards a low-carbon economy and the adoption of climate-related policies, regulations, and technological advancements. These risks include changes in market demand and consumer preferences, regulatory changes (e.g., carbon pricing, emissions regulations), shifts in energy markets, stranded assets (e.g., fossil fuel reserves), and reputational risks associated with environmental performance. Businesses and industries that are heavily reliant on fossil fuels or have high greenhouse gas emissions may face financial losses and market uncertainties due to transition risks. Liability Risks: Liability risks refer to legal and financial liabilities arising from climate-related damages, lawsuits, or claims. These liabilities can result from inadequate risk management practices, failure to adapt to climate change, negligence in addressing environmental impacts, or violations of environmental laws and regulations. Businesses, governments, and individuals may face legal consequences and financial penalties for their contribution to climate change, environmental degradation, or failure to mitigate climate-related risks. Overall, climate risk encompasses a wide range of potential threats and challenges posed by climate change and the transition to a low-carbon economy. Understanding and managing these risks are essential for enhancing resilience, safeguarding investments, and promoting sustainable development in a changing climate.
A climate transition plan is a time-bound action plan that clearly outlines how an organisation will pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations.
Climate-neutral e-fuels, such as e-kerosene, e-methane, or e-methanol, are produced by synthesising captured CO2 emissions and hydrogen.
Climate-related financial risks refer to the potential adverse impacts on financial institutions and markets arising from climate change and related policies. These risks encompass a range of factors, including physical risks (direct impacts of climate change on assets), transition risks (financial losses due to the transition to a low-carbon economy), liability risks (legal actions against companies for climate-related damages), and reputational risks (harm to a company’s image due to its climate-related practices). Financial institutions, such as banks, insurance companies, and asset managers, face climate-related risks as climate change can affect the value of assets, disrupt supply chains, and lead to increased insurance claims. Transition risks arise from changes in regulations, technological advancements, and shifts in consumer preferences toward sustainable practices. Liability risks come from potential lawsuits against companies contributing to climate change or failing to adapt to its impacts. Reputational risks arise when companies are perceived as not taking adequate measures to address climate change concerns. Addressing climate-related financial risks has become a significant focus for regulators, investors, and financial institutions globally, emphasizing the need for enhanced risk management, disclosure practices, and sustainable investment strategies.
A “circular business model” focuses on reusing, recycling, or composting all materials, leaving nothing to waste. It can also involve companies taking responsibility for disposing of the products they make through take-back programs.
Cloud seeding is a type of weather modification that aims to change the amount or type of precipitation, mitigate hail or disperse fog. The usual objective is to increase rain or snow, either for its own sake or to prevent precipitation from occurring in days afterward.
A coal-fired power plant, also known as a coal-fired thermal power station, is a facility that generates electricity by burning coal as a fuel to produce heat. The heat produced by burning coal is used to convert water into steam, which drives turbines connected to generators, ultimately generating electricity. Coal-fired power plants are among the most common types of power plants globally and have historically been a major source of electricity production, particularly in regions with abundant coal reserves. However, they are also a significant source of greenhouse gas emissions and air pollution, contributing to environmental and health concerns. Efforts to mitigate the environmental impact of coal-fired power plants include implementing cleaner technologies, such as carbon capture and storage, or transitioning to alternative energy sources.
Cold stores, also known as cool stores, are refrigerated spaces, buildings, or units intended for storing goods in a temperature lower than the surrounding environment.
Combined heat and power (CHP) generates electricity and heat at the same place. It uses one fuel to make both, and the heat is used for heating, cooling, hot water, and more, making it more efficient and cost-effective compared to traditional power plants that waste a lot of heat.
Industrial compostable materials are certified to break down under specific conditions in industrial composting facilities. These conditions include high temperatures (around 55-60°C), a moist environment, and the presence of oxygen.
The United Nations Framework Convention on Climate Change (UNFCCC) has the Conference of the Parties (COP) as its highest decision-making body. It consists of all “States Parties” and gathers annually to make decisions aimed at addressing climate change goals. These decisions require unanimous agreement among the States Parties or consensus.
Corporate Social Responsibility (CSR) is a concept that encourages businesses to consider their impact on the environment and society. It involves addressing a wide range of issues, including human rights, ethical governance, responsible sourcing, and environmental sustainability.
It involves taking waste products and using them to create new products. This approach aims to design products in a way that allows for their continual recovery and reuse, reducing waste and promoting sustainability.
It refers to every stage of a product’s existence, from its creation to its disposal. This term is commonly used in various business contexts, especially when discussing a company’s responsibilities concerning hazardous waste and the performance of their products.
Decarbonization is both a method of climate change mitigation and the process of significantly reducing or eliminating carbon dioxide (CO2) and other greenhouse gas (GHG) emissions from the atmosphere.
Decentralized energy is power generated nearby, not at a distant industrial facility and then transmitted through the national grid. This approach often involves renewable sources like small hydro, combined heat and power (CHP), biomass, solar, and wind power. It enhances energy security, cuts transmission losses, and reduces carbon emissions.
Demand response is a service that motivates businesses and consumers to either lower their energy consumption or use it at different times, particularly during peak periods when prices change or incentives are offered. This helps participants save on energy expenses and decrease their environmental impact.
A bottle deposit system involves consumers paying a small fee when buying plastic or glass bottles, which they can get back by returning the bottles to a store. These programs, like the ones in Scandinavian countries such as Denmark and Norway, have greatly boosted container recycling rates, reaching over 90%.
Digital green bonds are financial instruments issued electronically through blockchain or other digital ledger technologies to fund environmentally sustainable projects. These bonds adhere to the same principles as traditional green bonds, aiming to raise capital for projects with positive environmental impacts, such as renewable energy initiatives, energy efficiency projects, sustainable infrastructure development, or climate change mitigation efforts. The digital aspect of these bonds allows for increased transparency, efficiency, and accessibility in issuing, managing, and tracking funds, contributing to the advancement of green finance and sustainable investing.
Direct air capture refers to technologies that use a chemical approach to capture CO2 from ambient air. It’s different from carbon capture and storage (CCS), which captures emissions at a point source like a smokestack. We are focusing on DAC because it has the capacity to address the legacy emissions already present in our atmosphere, rather than being limited to offsetting current emissions.
Direct air capture (DAC) technologies extract CO2 directly from the atmosphere at any location, unlike carbon capture which is generally carried out at the point of emissions, such as a steel plant. The CO2 can be permanently stored in deep geological formations or used for a variety of applications.
Distributed generation, also known as distributed energy or on-site generation (OSG), is when power is produced or stored by numerous small devices connected to the grid. These devices are often called distributed energy resources (DER) or distributed energy resource systems.
A heat network is a system that delivers heat or hot water from a central location to a cluster of residential or commercial buildings. These networks can be powered by various sources, like energy-from-waste facilities, combined heat and power plants, and heat pumps. They offer benefits such as cost savings, increased efficiency, and reduced carbon emissions
Every business has a legal obligation to handle its waste in an environmentally friendly way, from creation and storage to transportation and disposal. They must be responsible for their waste from the time it’s produced until it reaches a facility authorized to manage it. Businesses are also required to ensure that their waste is properly managed, even after it’s been handed off to another party for disposal or recycling.
E-waste refers to any waste generated from discarded electronic devices and their components, as well as the materials used in their production or operation.
Ecosystems refer to interconnected networks of living organisms, including plants, animals, and microorganisms, and their physical environment, such as soil, water, and air. These systems are characterized by the complex interactions and relationships between the biotic (living) and abiotic (non-living) components. Ecosystems can vary greatly in size and scope, ranging from small microcosms, like a pond or forest, to large-scale systems, such as oceans or deserts. They play a vital role in maintaining the balance of nature by regulating essential processes like nutrient cycling, water purification, climate regulation, and providing habitats and resources for organisms to thrive. Ecosystems are dynamic and constantly evolving, influenced by natural disturbances, human activities, and environmental changes. Preserving and restoring ecosystems is essential for sustaining biodiversity, ecological stability, and human well-being.
Electric vehicles (EVs) are automobiles that run on electricity as their primary power source. They use electric motors and rechargeable batteries to propel the vehicle, replacing or supplementing the need for internal combustion engines that run on gasoline or diesel.
An Emissions Trading System (ETS) is a market mechanism where entities can buy and sell emissions permits or credits. This system is used to regulate and reduce greenhouse gas (GHG) emissions, particularly in energy-intensive industries. It covers 45% of the emissions produced in these sectors, allowing companies to trade permits or credits to manage and lower their emissions.
Energy-from-Waste (EfW) is a process that produces renewable energy, like electricity, heat, or transportation fuels, by controlled incineration of residual waste. EfW plants help reduce carbon emissions and promote the reuse and recycling of materials that would otherwise end up in landfills.
Energy Performance Contracting (EPC) is a low-risk approach for businesses that lack the resources and expertise to fund and carry out energy efficiency and renewable energy projects. It involves a partnership between the client and an external organization known as an Energy Service Company (ESCO). The project costs are covered by the savings achieved through the upgrades, making it an attractive financing option.
Energy recovery is a process that transforms waste materials into usable heat, electricity, or fuel using methods like combustion, gasification, and anaerobic digestion. This approach reduces the need for landfill disposal and helps cut down on greenhouse gas (GHG) emissions by providing energy without burning fossil fuels.
Energy resilience refers to a business having a dependable and consistent energy supply along with backup plans in case of power outages. Potential reasons for energy resilience challenges include power surges, accidents, weather-related events, natural disasters, equipment failures, and human operational errors. It’s important to consider all of these factors when planning for energy resilience.
An Energy Services Company (ESCO) is a business, whether for-profit or non-profit, that offers a wide array of energy-related services. These services encompass designing and executing energy-saving projects, retrofitting, energy conservation, outsourcing energy infrastructure, power generation, energy supply, and managing energy-related risks.
Energy storage is the process of collecting energy generated at one time for use at a later time. It’s a way to manage variations in energy demand and generation by storing surplus electricity for use during periods of increased demand. Various technologies, such as batteries and hydrogen, are employed for electricity storage.
Environmental, Social, and Governance (ESG) is a set of criteria used to evaluate a company’s performance and impact on various non-financial factors. ESG considerations are increasingly important for investors and stakeholders interested in sustainable and responsible business practices. Environmental factors assess a company’s impact on nature and ecosystems. Social factors evaluate a company’s relationships with employees, communities, and broader societal impacts. Governance factors examine the company’s leadership, ethics, and overall governance structure. ESG criteria help investors make decisions aligned with ethical, social, and environmental values.
Exchange-traded funds are SEC-registered investment companies that offer investors a way to pool their money in a fund that invests in stocks, bonds, or other assets. In return, investors receive an interest in the fund. Most ETFs are professionally managed by SEC-registered investment advisers.
Extended Producer Responsibility (EPR) is a strategy aimed at incorporating the environmental costs linked to products and their packaging throughout their entire life cycles into the market prices. This concept was initially introduced in Sweden by Thomas Lindhqvist in a 1990 report to the Swedish Ministry of the Environment.
The Fair Trade movement seeks to guarantee that producers in developing countries receive fair compensation for their products while promoting better social and environmental standards. This movement primarily concentrates on commodities or products that are sold by producers in developing nations to companies in developed countries, including items like coffee, cocoa, sugar, and chocolate.
A fast fashion business model involves mass-producing low-quality clothing, shoes, and accessories at low prices and constantly introducing new lines, often more frequently than each season. This approach often leads to a “design for disposal” mentality, discouraging consumers from reusing, repairing, or recycling their clothing.
“Financed emissions” refer to the greenhouse gas emissions directly or indirectly associated with the financial activities and investments of individuals, businesses, or institutions. It reflects the carbon footprint of economic entities’ funding and capital allocation decisions. These emissions can arise from various sources, including investments in fossil fuel-related industries, infrastructure projects, or companies with significant carbon-intensive operations. Understanding financed emissions is crucial for assessing financial portfolios’ environmental impact and aligning investment strategies with climate goals. Efforts to measure and disclose financed emissions are part of broader initiatives to promote sustainable and responsible investing, encouraging the financial sector to contribute to global efforts in addressing climate change.
“Flexible” energy systems are designed to adjust generation and consumption patterns in response to external signals like price fluctuations. These systems have received praise for their capacity to address the variability of renewable energy generation, enhance energy efficiency, reduce carbon emissions, and lower energy costs.
Fossil fuels are natural energy sources like coal and gas that were created from ancient organic matter millions of years ago. They are non-renewable and harmful to the environment because they emit carbon dioxide when burned.
Hydraulic fracturing, commonly known as “fracking,” is a drilling technique that involves injecting high-pressure liquid deep underground to break rock and extract oil or gas. Critics argue that this process can lead to water contamination, induce seismic activity, and worsen noise and traffic pollution.
Frequency response is a rapid-demand service needed to address significant frequency fluctuations resulting from power generation loss on the grid. This service can react in under a second, and it’s typically a short-term action that lasts less than half an hour. It involves temporarily reducing electricity demand at specific customer sites to stabilize the grid’s frequency.
A fuel cell is a device that turns chemical energy into electricity through a chemical reaction. These cells can generate electricity as long as they have a supply of fuel and oxygen, and they produce minimal emissions like nitrogen dioxide. Fuel cells are used to power various applications, including commercial, industrial, and residential buildings, as well as fuel cell vehicles.
Peaking power plants, often referred to as peaker plants, are power facilities that typically operate when there’s a significant demand for electricity, helping to stabilize the grid. Gas peaking plants use compressed natural gas to generate this power.
Gasification is a process that transforms organic or fossil fuel-based carbonaceous materials into carbon monoxide, hydrogen, and carbon dioxide. This is achieved by subjecting the material to high temperatures (>700 °C) in a controlled environment with oxygen and/or steam, without actual combustion.
Geothermal energy is heat energy produced and stored within the Earth. It’s harnessed by drilling wells to access hot water or steam, a process similar to oil drilling. This steam is then used to generate power, following a process similar to traditional power stations, utilizing turbines, generators, and transformers.
The Global Reporting Initiative (GRI) is the official reporting standard of the UN Global Compact, used by its 5,800 member companies. It’s one of the world’s oldest and most widely adopted reporting frameworks. GRI focuses on assessing an organization’s economic, environmental, and social impacts related to its key activities and how they affect stakeholders.
Global warming refers to the long-term increase in Earth’s average surface temperature due to human activities that release greenhouse gases into the atmosphere. These gases, such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and others, trap heat from the sun in the Earth’s atmosphere, leading to the planet’s gradual warming. Human activities, primarily the burning of fossil fuels like coal, oil, and natural gas for energy, industrial processes, transportation, and deforestation, have significantly increased the concentration of these greenhouse gases in the atmosphere. This increase enhances the natural greenhouse effect, contributing to the rise in global temperatures. The consequences of global warming include: Climate Change: Rising temperatures lead to changes in weather patterns, causing more frequent and severe extreme weather events like heatwaves, storms, floods, and droughts. Melting Polar Ice Caps: The warming climate causes glaciers and polar ice caps to melt, contributing to rising sea levels, which pose a threat to coastal communities and ecosystems. Ocean Acidification: Increased CO2 absorption by the oceans leads to ocean acidification, impacting marine life and ecosystems, such as coral reefs and fisheries. Biodiversity Loss: Changes in temperature and habitats affect ecosystems, leading to species extinction and loss of biodiversity. Addressing global warming requires collective efforts to reduce greenhouse gas emissions by transitioning to renewable energy sources, improving energy efficiency, implementing sustainable land-use practices, and adopting climate-friendly policies and technologies to mitigate its adverse impacts on the planet and future generations.
According to the EU Taxonomy Disclosures Delegated Act, the Green Asset Ratio (GAR) is the percentage of a credit institution’s assets that finance and invest in EU Taxonomy-aligned economic activities concerning total covered assets.
Green bonds are financial instruments issued by governments, municipalities, corporations, or financial institutions to raise capital specifically for projects with environmental benefits. These projects focus on addressing climate change, reducing carbon emissions, promoting renewable energy, enhancing energy efficiency, supporting sustainable land use, or implementing other eco-friendly initiatives. The proceeds from green bond issuance are dedicated exclusively to finance or refinance projects that have a positive environmental impact. Investors in green bonds seek not only financial returns but also contribute to sustainability efforts and environmental stewardship. Key features of green bonds include: Designated Use of Funds: Proceeds raised from green bonds are allocated to environmentally friendly projects, as defined by international green finance standards like the Green Bond Principles or Climate Bonds Initiative. Transparency and Reporting: Issuers are required to disclose detailed information on how the funds will be used and provide regular reporting on the environmental impact of the financed projects. Certification and Verification: Some green bonds undergo independent verification or certification to ensure alignment with predefined environmental criteria. Green bonds play a crucial role in mobilizing capital toward sustainability initiatives and fostering a transition to a low-carbon economy. They offer investors an opportunity to support environmentally beneficial projects while diversifying their investment portfolios. Additionally, they encourage organizations to adopt more sustainable practices by providing access to funding specifically earmarked for green initiatives.
The Green Climate Fund (GCF) is a financial mechanism established under the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries in mitigating and adapting to climate change. It aims to support projects and programs that promote low-emission and climate-resilient development, with a focus on vulnerable communities. The GCF mobilizes funds from both public and private sources and allocates them to initiatives that contribute to sustainable development and climate action globally.
Green hydrogen refers to hydrogen produced using renewable energy sources or processes that do not emit greenhouse gases. Unlike conventional hydrogen production methods, which often rely on fossil fuels and release carbon dioxide, green hydrogen is generated through electrolysis powered by renewable energy sources such as wind, solar, or hydroelectric power. This process involves splitting water molecules into hydrogen and oxygen, with the hydrogen being captured for various applications, including fuel for transportation, heating, and industrial processes. Green hydrogen is considered a key component of efforts to decarbonize the economy and reduce reliance on fossil fuels, as it offers a clean and sustainable alternative to traditional hydrogen production methods.
Green infrastructure refers to an interconnected network of natural or nature-based systems designed to provide environmental, economic, and social benefits to communities. Unlike traditional, grey infrastructure (such as concrete or steel structures), green infrastructure incorporates natural elements, including vegetation, soils, trees, wetlands, green roofs, permeable pavements, and other sustainable features. Key aspects of green infrastructure: Environmental Benefits: It helps manage stormwater, reduce flooding, improve air and water quality, mitigate the urban heat island effect, conserve biodiversity, and enhance ecosystems’ resilience to climate change. Social Advantages: Green infrastructure creates recreational spaces, promotes public health by providing access to nature, improves mental well-being, and contributes to a better quality of life for residents. Economic Contributions: It can lead to cost savings by reducing energy consumption, stormwater management costs, and infrastructure maintenance expenses. Additionally, green spaces often increase property values and attract businesses and tourism. Green infrastructure projects are integrated into urban planning and development strategies to create sustainable, resilient, and environmentally friendly communities. Municipalities, governments, developers, and urban planners incorporate these initiatives to address various challenges, including climate change, population growth, and environmental degradation. Examples of green infrastructure include green roofs, rain gardens, permeable pavements, urban forests, constructed wetlands, bioswales, and greenways. These elements collectively contribute to more sustainable and livable cities while promoting ecological health and human well-being.
The Green New Deal is a proposed set of policies that seek to combat climate change, reduce economic inequality, and create jobs, primarily by transitioning to renewable energy sources and increasing energy efficiency. It draws inspiration from the New Deal of the 1930s and has been a subject of debate, especially in the United States.
Greenhouse gases are atmospheric gases like water vapor, carbon dioxide, methane, and nitrous oxide that trap and release heat generated by the sun’s warming of the Earth’s surface. Human activities, particularly the combustion of fossil fuels and deforestation, have increased greenhouse gas emissions, leading to global warming.
Greenwashing is the deceptive practice of making unsupported or misleading claims about the environmental advantages of a product, service, technology, or company practice. It can create a false impression that a company is more environmentally responsible than it actually is.
Greywater recycling is the practice of treating and reusing wastewater from sinks, showers, and washing machines for non-potable purposes like toilet flushing and landscape irrigation, which helps conserve water resources.
A ground-source heat pump is a system that harnesses natural heat from the ground through buried pipes. It intensifies this heat using a vapor compression cycle and then uses it to warm buildings and provide hot water, all without the need for burning fossil fuels.
A Guarantees of Origin (GO) is a tracking system that enables companies buying renewable energy to verify that it was generated using clean technology. It creates a secure and unchangeable record of the energy’s journey from generation to delivery.
Waste is called “hazardous” when it can harm people or the environment. Things like batteries, mineral oils, and chemicals fall into this category. We have to handle hazardous waste separately from regular waste, and we should exchange paperwork called “consignment notes” every time we move it.
Hothouse Earth refers to extremely dangerous climate conditions that could make some parts of the world unlivable, which might happen if natural carbon sinks release more carbon than they absorb.
Hydroponics is a method of growing plants without soil by using water with dissolved mineral nutrients, which saves space, prevents soil degradation, and speeds up crop growth. It’s commonly used in indoor vertical farming.
Hydropower is a renewable energy source that comes from the movement of water. It’s harnessed by dams on rivers, where water is stored and then released through turbines to make electricity. This technology cuts down on using fossil fuels, enhances energy security, and produces only a small amount of greenhouse gasses.
Industrial symbiosis is like a teamwork arrangement between two or more companies or industrial facilities where the waste or by-products of one company become valuable resources for another. For instance, think of a tech company’s waste heat being used by a neighboring greenhouse to grow plants, creating a mutually beneficial relationship where one’s waste becomes the other’s treasure.
Integrated reporting is a type of reporting that connects an organization’s strategy, governance, and financial performance with the social, environmental, and economic conditions in which it operates.
INDCs, or Intended Nationally Determined Contributions, are like climate action plans that countries put forward under the UN Framework Convention on Climate Change (UNFCCC) in preparation for COP21 in 2015. These commitments outline the specific greenhouse gas (GHG) reduction targets each country pledges to achieve, with the goal of limiting the global temperature increase to well below 2°C, as agreed in the Paris Agreement.
The Internet of Things (IoT) is like linking physical objects through technology and wireless networks so they can exchange data. For instance, a smart home hub is a sustainable use of IoT that helps users efficiently control things like temperature, lighting, and other connected devices in their homes.
Originally, interoperability was an IT term describing how various information systems, devices, or apps work together to access, exchange, and use data across organizations seamlessly. However, it’s now also used to talk about the social, political, and organizational aspects that affect how well systems interact and perform together.
ISO 14001 is a globally recognized environmental management framework that provides guidance on establishing an effective environmental management system. It’s designed to help businesses achieve commercial success while also fulfilling their environmental responsibilities.
ISO 50001 is a globally recognized standard for energy management systems. It outlines the elements needed to create an energy policy, objectives, and the processes to achieve those objectives. This documented management system helps organizations maintain a consistent level of energy performance improvements.
A “Just Transition” refers to the concept and process of transitioning from an economy dependent on certain industries or activities that may have negative social and environmental impacts to a more sustainable, equitable, and inclusive economic model. This transition is characterized by efforts to ensure that the shift does not leave certain communities, workers, or sectors behind and that the benefits and burdens are distributed fairly. The term is often used in the context of addressing climate change, where the move away from fossil fuels and other environmentally harmful practices is necessary. A just transition acknowledges that the transformation to a greener economy should consider the well-being of workers, communities, and vulnerable populations affected by the changes. It emphasizes social justice, job creation, and the protection of workers’ rights during the transition process. Elements of a just transition may include retraining and reskilling workers for new job opportunities, providing support for affected communities, ensuring decent working conditions in new industries, and fostering an inclusive and participatory decision-making process. The goal is to achieve sustainability and environmental goals without exacerbating existing social and economic inequalities.
kWp stands for kilowatt ‘peak’ power output, and it’s often used in the context of solar arrays. For example, a solar panel with a peak power of 3 kWp, when operating at its maximum capacity for one hour, will generate 3 kWh of electricity.
A kilowatt-electric is equivalent to one thousand watts of electric capacity.
LEED, or Leadership in Energy and Environmental Design, is the most widely used green building rating system globally. It can be applied to various types of building projects, from new constructions to interior renovations and ongoing maintenance. LEED offers a framework that project teams can follow to create environmentally friendly, efficient, and cost-saving green buildings
Life cycle assessment (LCA) is a method used to evaluate the environmental impacts at every stage of a product’s life, starting from raw material extraction to processing, manufacturing, distribution, usage, repair, maintenance, and eventual disposal or recycling.
Liquefied natural gas (LNG) is a clear, odorless, non-toxic liquid form of natural gas that is created by cooling natural gas to a temperature of approximately -162 degrees Celsius (-260 degrees Fahrenheit). This process reduces the volume of the gas by about 600 times, making it more economical to transport and store compared to its gaseous state. LNG is primarily composed of methane along with small amounts of ethane, propane, butane, and nitrogen. It is commonly used as a fuel for electricity generation, heating, and as a transportation fuel for ships and trucks.
A low-carbon economy refers to an economic system that significantly reduces greenhouse gas emissions, particularly carbon dioxide (CO2) and other carbon-intensive pollutants, with the goal of mitigating climate change. This transition involves decreasing reliance on fossil fuels, which are major sources of carbon emissions, and adopting sustainable practices, technologies, and energy sources that have lower carbon footprints. Key components of a low-carbon economy include increased energy efficiency, greater use of renewable energy sources (such as solar, wind, and hydropower), sustainable transportation, and eco-friendly industrial processes. The aim is to achieve economic growth while minimizing environmental impact and contributing to the global effort to limit global warming and environmental degradation.
Materiality refers to the significance or importance of certain information or factors in a particular context. In the business and sustainability context, materiality typically involves identifying and focusing on the most relevant and significant issues that can have a substantial impact on an organization’s performance or its stakeholders’ decision-making. It helps determine what issues or data should be prioritized and reported on.
A Memorandum of Understanding (MoU) is a formal agreement between two or more parties that outlines the terms and details of a mutual understanding or cooperation. It is not a legally binding contract but rather a document that expresses the parties’ intent to work together on specific goals or initiatives. MoUs are commonly used in various fields, including business, government, and international relations, to establish a framework for collaboration without creating legal obligations. The parties involved outline their shared objectives, responsibilities, and expectations in the MoU, providing a basis for future negotiations and more detailed agreements if needed.
A microgrid is a localized group of electricity sources and loads that can connect to the wider electrical grid but also operate independently when necessary. Microgrids can efficiently incorporate various distributed generation sources, including electricity generated from renewable sources.
Microplastics are tiny plastic particles, typically less than five millimeters in size, that are often difficult to see without the aid of a microscope. They have been discovered in fish and shellfish intended for human consumption and were even detected in human stool samples for the first time in 2018.
Natural CapitalNatural capital refers to the components of the natural environment that offer valuable resources and services, such as clean air, clean water, food, and recreational opportunities. Natural capital accounting assigns a value to these resources. Every year, the Earth provides approximately $72 trillion worth of essential “free” goods and services that are crucial for a functioning global economy.
Natural gas is a fossil fuel primarily composed of methane, along with other hydrocarbons, carbon dioxide, nitrogen, and traces of various other compounds. It is formed beneath the Earth’s surface over millions of years from the remains of ancient plants and animals. As a clean-burning energy source, natural gas is widely used for heating, electricity generation, and as a fuel for vehicles. It is a versatile energy resource and plays a significant role in global energy markets.
Natural resource-backed loans are financial arrangements in which a borrower, typically a government or a state-owned company in a resource-rich country, secures a loan using its natural resources, such as oil, minerals, or other commodities, as collateral. These loans are structured so that the lender receives future revenue generated from the exploitation or sale of the natural resources to repay the loan amount, often with interest. This form of financing is commonly used for infrastructure projects or to address budget deficits, but it has drawn criticism due to concerns about transparency, exploitation, and the potential for creating unsustainable debt burdens for the borrowing countries.
Net energy is the amount of energy left for doing useful work or promoting economic growth after accounting for the energy expended in the process of obtaining that energy. It is typically expressed as a ratio, such as 5:1, which means that for every unit of energy used in the energy extraction process, 5 units are obtained and available for other purposes. For example, in the case of fracking, it may have a net energy ratio of 5:1, signifying that one unit of energy is consumed to extract and produce 5 units of energy.
A net positive approach in business involves a company contributing more to society, the environment, and the global economy than it extracts or consumes. The Net Positive Project, initiated in 2016 by Forum for the Future and industry leaders, aims to promote and expedite the adoption of net positive practices by companies, encouraging them to commit to and implement such approaches within their operations.
A net-zero carbon target is a commitment to balancing the greenhouse gasses emitted into the atmosphere with an equal amount removed or offset, ultimately resulting in no net increase in emissions. This goal is vital in the fight against climate change.
Carbon offsetting is a way to claim that a process or product is reducing its greenhouse gas emissions by preventing emissions elsewhere, not directly linked to the product’s lifecycle.
Wind turbines placed in oceans or freshwater bodies that capture the energy from the wind to produce electricity are called offshore wind farms. These farms generate renewable energy without emitting greenhouse gasses.
Wind turbines on land that use the wind’s energy to generate electricity are known as onshore wind farms. These farms provide a source of renewable energy and do not produce greenhouse gasses.
Onsite generation is the process of producing energy where it’s needed, right at the location where it will be used, rather than relying on the grid to supply it. This decentralized approach allows a business to generate and use its own energy on-site, and sometimes even sell extra energy back to the grid if there’s an excess.
OPEC+ refers to a coalition of oil-producing countries collaborating to manage and stabilize global oil prices through coordinated production adjustments. The term combines the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations. OPEC, founded in 1960, initially consisted of a group of major oil-exporting countries seeking to coordinate their production policies to ensure stable oil prices and steady revenue streams. OPEC+ emerged later as a broader coalition when, in 2016, OPEC members joined forces with several non-OPEC oil-producing countries, notably led by Russia. The expanded alliance aims to collectively regulate oil production levels to influence global oil prices and maintain market equilibrium. Key decisions, such as production cuts or increases, are typically reached through negotiations and agreements among OPEC+ members during periodic meetings. The goal is to prevent significant fluctuations in oil prices that could impact the economies of both oil-producing and oil-consuming nations. OPEC+ plays a crucial role in shaping the global energy landscape and responding to challenges and changes in the oil market.
Oxo-degradable plastics are a type of plastic, whether made from natural or fossil resources, that are engineered to break down when exposed to heat or UV rays due to a chemical additive they contain. While manufacturers have suggested that these fragments can biodegrade, research has shown that this doesn’t always happen as claimed.
The Paris Agreement, established at COP 21 in December 2015 and ratified by 97 countries in November 2016, aims to limit the global average temperature increase to “well below 2 degrees Celsius” above pre-industrial levels, with an effort to keep it within 1.5 degrees Celsius.
Peatland is land with a layer of organic material like plants or mosses on the surface. Peat bogs, covering about 2-3% of the Earth’s surface, store a lot of carbon, even more than all the world’s forests. When peatlands are harmed, they release a lot of carbon into the atmosphere, contributing to global emissions. Restoring peatlands can help reduce these emissions.
Photovoltaic refers to a technology that generates electricity from sunlight. Photovoltaic systems use solar cells to convert sunlight directly into electrical energy.
High-density polyethylene (HDPE) is a plastic often used for milk bottles, bleach containers, and cosmetics packaging, whereas low-density polyethylene (LDPE) is typically employed for items like grocery bags and garbage liners.
The agreement that governs the sale and purchase of power is known as a PPA or power purchase agreement. A PPA is a contract between two parties, one who produces or generates power for sale (the seller/producer/project company) and one who seeks to purchase power (the buyer/offtaker). This contract is sometimes referred to as an offtake agreement.
“Pre-industrial levels” refers to the atmospheric concentrations of certain gases and other environmental conditions before the widespread industrialization that began in the 18th century. When discussing climate change, the term is often used to refer to the period before significant human activities, such as the burning of fossil fuels and large-scale industrial processes, led to substantial increases in greenhouse gas emissions. In the context of climate science, pre-industrial levels are commonly used as a baseline for understanding and measuring changes in greenhouse gas concentrations, temperature, and other climate-related factors. The reference period is typically considered to be the mid- to late 19th century, before the rapid industrial expansion and the associated rise in carbon dioxide (CO2) concentrations from activities like burning coal and oil. Using pre-industrial levels as a baseline helps scientists assess the extent of human impact on the climate and understand the changes that have occurred since the onset of industrialization. It serves as a point of comparison for setting emission reduction targets and developing climate policies.
Renewable diesel is derived from animal fats, food waste, and plant oils. It shares chemical properties with petroleum-based diesel and can be manufactured using current refinery infrastructure. However, its production typically yields lower volumes compared to traditional diesel.
Renewable electricity refers to electric power generated from renewable energy sources, which are sources of energy that naturally replenish themselves on a human timescale and have a significantly lower environmental impact compared to traditional fossil fuels. The primary renewable energy sources for electricity generation include: Solar Energy: Generated from sunlight using photovoltaic cells or solar thermal systems. Wind Energy: Produced by harnessing the kinetic energy of moving air with wind turbines. Hydropower: Generated from the energy of flowing or falling water, typically in dams or river systems. Geothermal Energy: Extracted from the Earth’s internal heat, often through geothermal power plants. Biomass: Derived from organic materials, such as wood, agricultural crops, or waste, through processes like combustion or bioenergy. Renewable electricity is considered more sustainable and environmentally friendly because these sources produce minimal greenhouse gas emissions and reduce dependence on finite and environmentally harmful fossil fuels. The transition to renewable electricity is a key aspect of global efforts to mitigate climate change and achieve a more sustainable energy future.
Renewable energy refers to energy derived from naturally replenishing sources that are practically inexhaustible over human timescales. Unlike fossil fuels, which are finite and non-renewable, renewable energy sources are continuously replenished by natural processes such as sunlight, wind, water flow, and geothermal heat. Common forms of renewable energy include: Solar Energy: Derived from sunlight, solar energy can be harnessed through photovoltaic cells to generate electricity or through solar thermal systems to produce heat for various applications. Wind Energy: Wind turbines capture the kinetic energy of moving air and convert it into electricity. Wind energy is particularly abundant in regions with consistent and strong winds. Hydropower: Hydropower plants utilize the energy of flowing water, typically from rivers or dams, to generate electricity through turbines. It is one of the oldest and most widely used forms of renewable energy. Biomass Energy: Biomass energy is derived from organic materials such as wood, agricultural residues, and organic waste. It can be burned directly for heat or converted into biogas or biofuels for electricity generation and transportation. Geothermal Energy: Geothermal energy harnesses heat from the Earth’s interior, typically through steam or hot water reservoirs, to generate electricity or provide heating and cooling for buildings. Renewable energy sources offer several advantages over fossil fuels, including reduced greenhouse gas emissions, energy security, and environmental sustainability. As concerns about climate change and energy security grow, the adoption of renewable energy technologies is increasing worldwide as part of efforts to transition towards a cleaner and more sustainable energy future.
Traditional plastics are manufactured using fossil fuels, making them a finite resource. Given the current rate of plastic production, which has more than doubled since 1998, concerns about resource scarcity are becoming more prominent in the plastics industry. However, these concerns have not prevented the sector from experiencing continuous growth, positioning it to reach a value of $654 billion by 2020. The challenges associated with ongoing plastic use are more likely to be related to social and environmental issues rather than financial concerns. Roughly 12 million tonnes of plastics enter global waterways and oceans annually, resulting in an alarming number of wildlife fatalities due to the ingestion of plastic. Scientists are also investigating the potential effects of plastic in water and seafood on public health, with microplastics detected in human stools for the first time in 2018. In response to these trends, corporations are taking actions, often at a cost to their business, to regain and retain consumer trust.
In the wake of the BBC’s documentary series, “Blue Planet 2,” in 2016, plastic waste has emerged as a significant concern for consumers. Increasingly, public awareness has focused on ocean pollution and littering, making plastic waste more critical to shoppers than product pricing. Recent figures from WRAP indicate that the UK disposes of 3.7 million tonnes of plastic each year, with 32% being recycled and 30% littered. Among plastic items, plastic packaging and plastic beverage bottles now exhibit the highest recycling rates at 76% and 78%, respectively.
The corporate sector is increasingly realizing its pivotal role in addressing climate change. The growing urgency to mitigate global warming has given rise to various approaches and strategies aimed at reducing greenhouse gas emissions. One such strategy gaining traction is the adoption of science-based targets. In this article, we’ll explore what science-based targets are, their significance, the adoption process, challenges, and the many benefits they offer. Understanding Science-Based Targets Science-based targets are a set of goals established by businesses to provide a clear roadmap for reducing greenhouse gas emissions. What sets these targets apart is their alignment with the level of emissions reduction required to keep global warming below 2 degrees Celsius from pre-industrial levels. The Genesis of Science-Based Targets The Science-Based Targets initiative emerged as a collaborative effort in late 2015, uniting the forces of CDP, the UN Global Compact (UNGC), the World Resources Institute (WRI), and WWF. This initiative assists companies in setting and achieving science-based targets. Its overarching goal is to make science-based targets a standard practice for businesses globally, thereby playing a substantial role in lowering greenhouse gas emissions. The Significance of Science-Based Targets The pressing need to combat climate change is evident as we continue to experience record-breaking temperatures. Human activities, notably in the corporate sector, are a significant contributor to this challenge. By adopting science-based targets, businesses can make quantifiable contributions to reducing emissions. This approach aligns with global frameworks like the Sustainable Development Goals (SDGs) and the Paris Agreement on climate change. The Science-Based Targets Process The Science-Based Targets initiative offers flexibility by allowing businesses to choose from various target-setting methods. This enables companies to set goals that best suit their unique characteristics and industries. The process begins with a commitment letter, signaling a company’s intent to establish a science-based target. Following this commitment, a period of up to 24 months is allocated to develop the target. Once ready, the target is submitted for verification by the initiative. To meet the criteria, the target must encompass all emissions covered by the Greenhouse Gas Protocol, including both Scope 1 and Scope 2 emissions. A commitment period of at least five years is required from the announcement date. Companies must also provide annual disclosure of greenhouse gas emissions and progress data. Embracing Science-Based Targets: Who’s On Board? The Science-Based Targets initiative has seen 269 companies, representing nearly $5 trillion in market value, commit to adopting science-based targets. Notable participants include tech giant Dell, fashion retailer H&M, and electronics manufacturer Sony. The trend of businesses embracing science-based targets is poised for growth, with a survey of sustainability professionals revealing that over half of respondents were either implementing or considering these targets in their strategies. Challenges in Adopting Science-Based Targets Transitioning to science-based targets can pose challenges for businesses. Justification and internal buy-in may be required to ensure various business units and the supply chain support these goals. Effective communication is key to overcoming these challenges, framing the targets in terms that resonate with corporate decision-makers, such as risk, opportunities, revenue, and reputation. The Business Benefits of Science-Based Targets The advantages of science-based targets are clear and measurable. Companies can experience cost savings, energy efficiency improvements, and a healthier bottom line. Furthermore, the long-term sustainability vision of these targets encourages innovation, enhances company reputation, and aligns with evolving climate regulations. Meeting Science-Based Targets: An Ongoing Journey Although a well-established science-based target may not always be met due to unexpected circumstances, maintaining transparency and commitment is vital. Transparent communication, including progress updates and gap-filling plans, ensures that stakeholders remain informed and engaged. In the quest for sustainability, science-based targets represent a crucial tool for businesses to drive meaningful change and contribute to the global effort to combat climate change. Adopting these targets not only helps the environment but also enhances the reputation and resilience of companies in an increasingly eco-conscious world.
Scope 3 refers to those emissions generated by a company’s customers and supply chain, often constituting more than 80% of its carbon footprint. In highly polluting sectors like oil and gas, this percentage can be even higher.
Greenhouse gas emissions are typically divided into three distinct categories, or ‘scopes,’ as outlined by the widely-recognized international accounting framework, the Greenhouse Gas (GHG) Protocol. Scope 1 and Scope 2 encompass emissions directly generated by an organization (e.g., fuel consumption in company vehicles and purchased electricity). On the other hand, Scope 3 emissions include all the indirect emissions associated with an organization’s activities.
The concept of product servitization refers to the approach of enhancing the value of products by incorporating services or potentially substituting a product with a service. This transition in business strategy holds significance as it aligns the interests of both customers and providers more closely. A notable instance is Rolls-Royce’s airplane engine program, where customers are charged based on the hours the aircraft is in operation. In return, Rolls-Royce takes responsibility for maintenance, part replacements, adjustments, and remote monitoring of the engine.
The gas generated through hydraulic fracturing.
A management concept that involves identifying business opportunities in addressing societal issues. ‘Creating Shared Value’ was initially presented in the Harvard Business Review in 2011. It’s grounded on the idea that a company’s competitiveness and the well-being of the surrounding communities are interconnected and mutually beneficial.
An economic model where services and resources are shared, borrowed, or rented, frequently through online platforms, with the aim of saving money, lowering expenses, and reducing waste. Prominent business instances in the sharing economy include Airbnb, Zipcar, and Uber Pool’s car-sharing program.
The term “single-use” garnered significant attention when it was named Collins Dictionary’s word of the year in November 2018. However, there remains a lack of consensus across industries, nations, and businesses regarding its precise definition. In broad terms, “single-use” pertains to plastic items that are either explicitly designed for one-time use by consumers before disposal or recycling or are highly likely to be used in such a manner. These items encompass disposable cutlery, plastic straws, flimsy plastic carrier bags, drink stirrers, and snack packets. Often distributed at on-the-go venues or events, encouraging recycling and minimizing littering has historically posed a challenge for businesses. Furthermore, many single-use plastics contain either flexible plastic film or black plastic, both of which are deemed “hard-to-recycle” by various local authorities.
Small and Medium Enterprises (SMEs) refer to businesses that are characterized by their relatively small size and scale of operations. There isn’t a universally agreed-upon definition of SMEs, as it can vary from country to country. However, they are generally categorized based on factors such as the number of employees, annual revenue, or total assets. In many contexts, SMEs are defined based on the number of employees, with different thresholds used to distinguish between small and medium-sized enterprises. For example, in the European Union, a small enterprise typically has fewer than 50 employees, while a medium-sized enterprise has between 50 and 250 employees. SMEs play a crucial role in the economy, contributing to job creation, innovation, and economic growth. They are often considered the backbone of many economies worldwide, particularly in emerging markets. SMEs can operate in various sectors, including manufacturing, services, retail, and technology, among others. Despite their significance, SMEs often face challenges such as limited access to finance, regulatory burdens, and resource constraints. Governments and organizations around the world often implement policies and programs to support SME development, including access to financing, capacity building, and regulatory reforms.
Systems that oversee and control the distribution of electricity from diverse sources to match the fluctuating power needs of consumers. Many experts believe that smart grids have the potential to facilitate the integration of almost all clean energy technologies, encompassing renewables, electric vehicles, and energy efficiency measures.
Solar radiation modification (SRM), or solar geoengineering, is a type of climate engineering (or geoengineering) in which sunlight (solar radiation) would be reflected back to outer space to offset human-caused climate change.
The Investment Tax Credit (ITC) or solar federal tax credit is a nationwide incentive for homeowners and business owners who install solar panels. The credit is worth 30% of your total project costs. For example, if you install an 8 kilowatt (kW) solar system for $22,500, you would get a $6,750 tax credit on your next IRS filing. If the credit exceeds your tax burden and you cannot use the full amount at once, you can apply the remaining balance to future tax filings.
Soot, or fine particulate matter, comes from sources ranging from power plants to vehicle tailpipes to construction sites. It causes lung and heart damage and has been found to disproportionately affect low-income communities, according to the EPA.
Sustainability is a broad concept that refers to the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It encompasses practices, policies, and strategies that aim to balance economic, social, and environmental considerations to create a harmonious and lasting impact on the planet and its inhabitants. In various contexts, sustainability involves responsible resource use, environmental conservation, social equity, economic viability, and ethical decision-making. The goal of sustainability is to create a resilient and thriving global community while minimizing negative impacts on the environment and promoting a better quality of life for all.
Sustainability-linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth. The SLL have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the global syndicated loan markets.
Sustainable Aviation Fuel (SAF) refers to an environmentally friendly alternative to traditional aviation fuels derived from fossil sources. SAF is produced from sustainable feedstocks such as biomass, waste oils, agricultural residues, or synthetic processes powered by renewable energy. The primary goal of SAF is to reduce aviation’s carbon footprint by lowering greenhouse gas emissions. It can be blended with conventional jet fuel or used as a drop-in replacement, enabling aircraft to operate with lower overall carbon emissions. SAF is considered a crucial element in the aviation industry’s efforts to achieve sustainability and mitigate its impact on climate change.
Sustainable finance is the financial activities and investments integrating environmental, social, and governance (ESG) criteria into decision-making processes. It aims to generate long-term value for investors, society, and the environment. Sustainable finance encompasses various practices, including green bonds, social impact investing, sustainable lending, and responsible investing. Sustainable finance aims to support economic development while promoting environmental sustainability, social equity, and ethical governance principles. It encourages businesses and financial institutions to consider the broader impacts of their investments and financing decisions, seeking to balance profitability, social responsibility, and environmental stewardship.
A mixture of clay, sand, water, and bitumen that can be extracted and processed to obtain oil. The greenhouse gas emissions associated with tar sand extraction and processing are considerably higher compared to those of conventional crude oil.
Telematics is a technology that employs global positioning systems and sensors to collect up-to-the-minute data and location details about fleet vehicles in motion. It has the potential to lower fleet emissions through improved route planning, decreased idling, detection of unauthorized vehicle usage, and timely maintenance and repairs.
The Task Force on Climate-related Financial Disclosures (TCFD), initiated by Mark Carney, the former Governor of the Bank of England, and Michael Bloomberg, the former Mayor of New York, is a market-oriented effort. It aims to assist investors in comprehending their financial vulnerability to climate-related risks and encourages businesses to transparently and consistently disclose such information. TCFD issues a series of guidelines for voluntary and standardized disclosures concerning financial risks related to climate change in mainstream financial reports. These guidelines are designed to assist companies in offering relevant information to investors, lenders, insurers, and various stakeholders.
Thermal power plants are electricity generation facilities that use fossil fuels, such as coal, natural gas, or oil, to heat water and produce steam. This steam drives turbines connected to generators, which convert the kinetic energy of the rotating turbines into electrical energy. Thermal power plants are among the most common types of power plants globally and play a significant role in meeting the electricity demand of many countries. However, their reliance on fossil fuels for energy generation raises concerns about air pollution, greenhouse gas emissions, and environmental sustainability.
Tidal energy is a type of renewable energy derived from harnessing the power of ocean tides to generate electricity. It’s a form of hydropower that utilizes the energy generated by tidal movements.
A concept that guarantees the credibility and transparency of sustainability assertions linked to products throughout the supply chain. Traceability serves to promote ethical standards concerning human rights, labor practices, environmental impact, and anti-corruption measures.
Transition finance refers to investments meant to decarbonize high-emitting and hard-to-abate industries such as steel, aviation and shipping. This capital is also aimed at addressing potential social impacts associated with decarbonization, including unemployment and loss of tax revenue for local governments.
Trawling is a fishing method that involves dragging a large net, called a trawl net, through the water behind a boat or vessel. The net is usually funnel-shaped and held open by various means, such as floats at the top and weights at the bottom. Trawling can be conducted at different depths and over various types of seabed, targeting a wide range of marine species, including fish, shrimp, and shellfish. This method is widely used in commercial fishing to capture large quantities of seafood efficiently but can also have negative environmental impacts, such as bycatch of non-target species and habitat destruction.
Triads are three specific half-hour intervals of high electricity demand that occur in the winter months, from November to February. They serve as incentives for customers to take actions aimed at lowering their electricity consumption during these peak periods of high demand.
A concept that aims to expand the business perspective beyond financial profits to encompass social and environmental obligations. The triple bottom line evaluates a company’s level of social responsibility, its economic performance, and its ecological footprint. This term was coined by John Elkington in 1994 and subsequently featured in his 1997 book titled “Cannibals with Forks: The Triple Bottom Line of 21st Century Business.”
“Unabated fossil energy” refers to using fossil fuels, such as coal, oil, and natural gas, without employing any form of emission reduction or carbon capture technologies to mitigate the release of greenhouse gases into the atmosphere. In the context of efforts to address climate change, “abatement” usually refers to the reduction or prevention of these emissions. Therefore, “unabated fossil energy” implies the continued utilization of traditional fossil fuel sources without implementing measures to curb or capture the associated carbon dioxide (CO2) and other greenhouse gas emissions. This practice contributes significantly to the accumulation of greenhouse gases in the atmosphere, leading to global warming and climate change. Transitioning to cleaner and more sustainable energy sources is often advocated as a means to reduce reliance on unabated fossil energy and mitigate environmental impacts.
The voluntary carbon market (VCM) is a platform where individuals, companies, and governments can voluntarily purchase and sell carbon credits or offsets to compensate for their own greenhouse gas (GHG) emissions. Unlike the compliance carbon market, where participants are legally obligated to adhere to emission reduction targets, the voluntary market operates on a voluntary basis. In the VCM, buyers, often corporations or individuals, purchase carbon credits generated by projects that reduce or remove greenhouse gas emissions. These projects can include renewable energy initiatives, reforestation efforts, methane capture projects, or energy efficiency programs. The carbon credits represent a quantified reduction in emissions, and the buyers can use them to offset their own carbon footprint. The voluntary carbon market provides participants with flexibility in how they address their emissions. Companies, for example, may choose to engage in voluntary offsetting to demonstrate environmental responsibility, meet sustainability goals, or appeal to environmentally conscious consumers. Individuals might participate to neutralize the carbon impact of their activities, such as travel or energy consumption. While the VCM has grown significantly, it has faced challenges related to standardization, credibility, and concerns about the real impact of some offset projects. Efforts are ongoing to improve transparency, accountability, and the overall effectiveness of the voluntary carbon market to ensure that purchased offsets genuinely contribute to global emission reduction goals.
A “waste stream” refers to the flow or movement of waste materials generated by various sources, such as households, businesses, industries, and institutions, from their point of origin to their final disposal or management destination. Waste streams encompass a wide range of materials, including solid waste, liquid waste, and gaseous waste, each with its own characteristics and management requirements. Understanding waste streams is crucial for effective waste management and environmental protection. By analyzing waste streams, authorities, organizations, and individuals can identify opportunities to reduce waste generation, improve recycling and reuse practices, and minimize environmental impacts associated with waste disposal. Key components of waste streams include: Generation: Waste is generated at various points in the production-consumption chain, including manufacturing processes, packaging, consumption, and disposal of goods and products. Composition: Waste streams consist of diverse materials, including organic waste, paper, plastics, glass, metals, hazardous waste, and electronic waste, among others. The composition of waste streams can vary depending on factors such as location, demographics, and economic activities. Collection and Transportation: Waste materials are collected and transported from their point of origin to waste management facilities, such as recycling centers, composting facilities, landfills, or waste-to-energy plants. Collection and transportation methods vary depending on the type of waste and local infrastructure. Treatment and Disposal: Waste undergoes various treatment processes before final disposal or recycling. Treatment methods may include sorting, recycling, composting, incineration, or landfilling, depending on the nature of the waste and available technologies. Regulation and Management: Waste streams are subject to regulatory frameworks and management practices aimed at minimizing environmental impacts, promoting resource recovery, and ensuring public health and safety. Governments, regulatory agencies, and waste management authorities play a crucial role in overseeing waste management activities and enforcing regulations. Efforts to manage waste streams effectively often involve strategies such as source reduction, recycling and reuse programs, composting, waste-to-energy technologies, and pollution prevention measures. Sustainable waste management practices aim to minimize waste generation, maximize resource recovery, and reduce environmental pollution and greenhouse gas emissions associated with waste disposal. By understanding and addressing waste streams comprehensively, stakeholders can work together to develop and implement holistic waste management solutions that contribute to a cleaner, healthier, and more sustainable environment.
A waste-to-energy plant is a facility that converts various types of waste materials into electricity, heat, or fuel through combustion or other thermal processes. These facilities typically handle municipal solid waste (MSW), which includes household garbage, as well as industrial or commercial waste. The waste is burned at high temperatures in specially designed furnaces or incinerators, generating steam that powers turbines to produce electricity. Alternatively, the heat generated can be used for district heating systems or converted into synthetic fuels like ethanol or biodiesel. Waste-to-energy plants help reduce the volume of waste that would otherwise be sent to landfills, thereby mitigating environmental pollution and greenhouse gas emissions. Additionally, they contribute to the generation of renewable energy and can serve as an alternative to fossil fuels in meeting energy demands. However, concerns regarding air emissions and the potential release of pollutants from the combustion process have led to the development of advanced emission control technologies and strict regulatory standards for these facilities.
Water scarcity refers to the situation where the demand for water exceeds the available supply, either temporarily or permanently, resulting in inadequate access to clean and safe water for drinking, sanitation, agriculture, and other uses. It is a pressing global challenge driven by factors such as population growth, urbanization, climate change, pollution, inefficient water management, and unsustainable consumption patterns. Key aspects of water scarcity include: Physical Scarcity: Physical water scarcity occurs when there is not enough water to meet the demands of a population or region. This may be due to limited freshwater resources, low precipitation, or uneven distribution of water resources across geographical areas. Economic Scarcity: Economic water scarcity occurs when water resources are available but cannot be effectively accessed or utilized due to factors such as inadequate infrastructure, lack of investment, or poor management practices. Economic constraints can hinder access to water, particularly for marginalized communities or regions with limited financial resources. Impact on Human Health: Water scarcity undermines access to clean and safe drinking water, leading to waterborne diseases, malnutrition, and poor sanitation practices. Lack of access to adequate water and sanitation facilities contributes to health problems, particularly in developing countries with limited access to healthcare services. Impact on Agriculture: Agriculture is a major consumer of water, accounting for a significant portion of global water withdrawals. Water scarcity can disrupt agricultural production, reduce crop yields, and threaten food security, particularly in regions dependent on irrigation for agriculture. Environmental Degradation: Water scarcity can have detrimental effects on ecosystems, leading to habitat loss, reduced biodiversity, and degradation of aquatic ecosystems. Drought conditions and water scarcity can exacerbate environmental degradation, leading to long-term ecological consequences. Addressing water scarcity requires a multifaceted approach that includes: Water Conservation: Promoting water conservation practices and efficient water use technologies to reduce water waste and optimize water consumption. Water Management: Implementing integrated water resource management strategies to improve water allocation, storage, distribution, and infrastructure development. Investment and Infrastructure: Investing in water infrastructure, such as dams, reservoirs, water treatment plants, and irrigation systems, to enhance water supply and distribution networks. Climate Adaptation: Building resilience to climate change impacts, such as droughts and water shortages, through adaptation measures, such as water harvesting, rainwater management, and drought-resistant crop varieties. Policy and Governance: Implementing policies and regulations to promote sustainable water management, equitable access to water resources, and effective governance frameworks for water allocation and management. Addressing water scarcity requires concerted efforts at the local, national, and global levels, involving governments, communities, civil society organizations, businesses, and international agencies. By prioritizing water security and adopting sustainable water management practices, stakeholders can mitigate the impacts of water scarcity and ensure access to clean and safe water for all.
Whole life costing (WLC) is a comprehensive approach to evaluating the total cost of owning, operating, and maintaining an asset or project over its entire lifespan. Unlike traditional cost analysis methods that focus solely on upfront or initial costs, WLC considers all costs incurred throughout the lifecycle of the asset, including acquisition, installation, operation, maintenance, and disposal costs. This approach enables decision-makers to make more informed choices by taking into account the long-term economic, environmental, and social implications of their investments. Key components of whole life costing include: Acquisition Costs: These are the upfront costs associated with purchasing or acquiring the asset, including the purchase price, installation costs, and any initial setup or configuration expenses. Operating Costs: These are the ongoing costs incurred during the operational phase of the asset, such as energy consumption, fuel costs, maintenance and repair expenses, insurance premiums, and taxes. Maintenance Costs: These are the costs associated with maintaining and servicing the asset to ensure its optimal performance and longevity. This may include routine maintenance, repairs, replacement parts, and periodic inspections. Disposal Costs: These are the costs associated with decommissioning, dismantling, and disposing of the asset at the end of its useful life. This may include disposal fees, recycling costs, environmental remediation expenses, and any residual value or salvage value recovered from the asset. Lifecycle Assessment: Whole life costing also considers the environmental and social impacts of the asset throughout its lifecycle, such as its carbon footprint, energy efficiency, resource consumption, and social benefits or risks. By incorporating all relevant costs and factors into the analysis, whole life costing provides a more accurate and comprehensive assessment of the true cost of ownership over time. This enables decision-makers to identify cost-effective and sustainable solutions, optimize resource allocation, mitigate risks, and maximize value for money. Whole life costing is particularly useful in sectors such as construction, infrastructure, manufacturing, transportation, and utilities, where assets have long lifespans and significant lifecycle costs.
Wholesale markets play a critical role in facilitating climate finance, which refers to the mobilization of funds to support projects, initiatives, and activities aimed at addressing climate change mitigation and adaptation. Wholesale markets serve as intermediaries between investors, financial institutions, project developers, and other stakeholders, channeling capital towards climate-friendly investments and initiatives on a large scale. Here’s how wholesale markets contribute to climate finance: Access to Capital: Wholesale markets provide access to capital for climate-related projects and initiatives by pooling funds from various investors, including institutional investors, banks, pension funds, and asset managers. These markets offer a platform for raising capital at scale, enabling climate finance to reach projects and sectors that require significant investment. Risk Management: Wholesale markets help manage risks associated with climate finance by offering financial instruments, such as green bonds, climate risk insurance, and derivatives, designed to hedge against climate-related risks, including extreme weather events, regulatory changes, and shifts in market dynamics. These instruments help attract investors by providing mechanisms to mitigate financial risks associated with climate-related investments. Market Liquidity: Wholesale markets enhance liquidity in climate finance by facilitating the trading of financial instruments and securities related to climate-related assets and projects. This liquidity improves the efficiency of capital allocation, pricing, and risk management, making it easier for investors to buy and sell climate-related investments. Standardization and Transparency: Wholesale markets promote standardization and transparency in climate finance by establishing common frameworks, standards, and reporting requirements for climate-related investments. This standardization helps improve market integrity, reduce information asymmetry, and enhance investor confidence in climate finance opportunities. Innovation and Scalability: Wholesale markets foster innovation and scalability in climate finance by supporting the development of new financial products, services, and business models tailored to climate-related challenges and opportunities. These markets enable experimentation with innovative financing mechanisms, such as green bonds, carbon markets, and climate funds, to mobilize capital effectively for climate action. Policy Alignment: Wholesale markets play a crucial role in aligning financial flows with climate policy objectives by integrating environmental, social, and governance (ESG) considerations into investment decision-making processes. These markets incentivize investments in climate-friendly projects and sectors, driving the transition towards a low-carbon, resilient economy. Overall, wholesale markets serve as key enablers of climate finance, providing the infrastructure, mechanisms, and incentives needed to mobilize capital at scale for climate change mitigation and adaptation efforts. By leveraging the strengths of wholesale markets, stakeholders can accelerate the transition to a sustainable, low-carbon future and address the urgent challenges posed by climate change.
Wind power is a renewable energy source that harnesses the kinetic energy of the wind to generate electricity. It is one of the fastest-growing sources of electricity generation globally and plays a significant role in the transition to clean, sustainable energy systems. Here are some key aspects of wind power: Wind Turbines: Wind power is generated using wind turbines, which consist of large blades mounted on a rotor connected to a generator. As the wind blows, it causes the blades to rotate, converting the kinetic energy of the wind into mechanical energy. The generator then converts this mechanical energy into electricity, which can be used to power homes, businesses, and industries. Onshore and Offshore Wind Farms: Wind turbines can be installed on land (onshore) or in bodies of water (offshore). Onshore wind farms are typically located in areas with consistent wind patterns, such as plains, hills, or coastal regions. Offshore wind farms are situated in oceans or seas, where winds tend to be stronger and more consistent, allowing for higher electricity generation potential. Advantages: Wind power offers several advantages as a renewable energy source. It produces no greenhouse gas emissions or air pollutants during operation, helping to mitigate climate change and improve air quality. Wind energy is abundant, widely distributed, and inexhaustible, making it a reliable and sustainable energy source. Additionally, wind power can provide economic benefits by creating jobs, stimulating local economies, and reducing dependence on fossil fuels. Challenges: Despite its advantages, wind power also faces some challenges. Wind energy generation is intermittent and variable, depending on factors such as wind speed, direction, and time of day. This variability can pose challenges for grid integration and require backup power sources or energy storage systems to ensure grid stability and reliability. Additionally, wind turbines may have visual or aesthetic impacts, as well as potential effects on wildlife, including birds and bats. Costs and Technology: The cost of wind power has declined significantly in recent years, making it increasingly competitive with conventional fossil fuels. Advances in technology, such as taller turbines, longer blades, and improved efficiency, have contributed to lower costs and higher energy output. Additionally, policies such as government incentives, tax credits, and renewable energy targets have helped drive investment in wind power projects worldwide. Overall, wind power plays a vital role in diversifying energy sources, reducing greenhouse gas emissions, and promoting energy independence. With continued technological innovation, policy support, and investment, wind power has the potential to become a leading source of clean, renewable energy for years to come.
"Zero waste” is a philosophy and lifestyle aimed at minimizing the amount of waste generated by individuals, businesses, and communities. The goal of zero waste is to reduce, reuse, recycle, and compost as much as possible to divert waste from landfills and incinerators, thereby minimizing environmental impact and conserving resources. To achieve zero waste, several key principles are typically followed: Reduce: The first step is to minimize waste generation by reducing consumption, opting for products with minimal packaging, and making conscious choices to avoid single-use items. Reuse: Reusing items whenever possible helps extend their lifespan and reduces the need for new products. This can involve repairing, repurposing, or donating items instead of disposing of them. Recycle: Recycling involves converting waste materials into new products to prevent them from ending up in landfills. Proper sorting and recycling of materials such as paper, plastic, glass, and metal are essential components of zero waste efforts. Compost: Organic waste, such as food scraps and yard waste, can be composted to create nutrient-rich soil amendment for gardening and agriculture. Composting diverts organic waste from landfills and reduces methane emissions. Responsible Disposal: For waste that cannot be avoided, reused, recycled, or composted, responsible disposal methods such as safe landfilling or waste-to-energy technologies may be employed as a last resort. Zero waste initiatives can be implemented at various levels, including individual households, businesses, schools, and communities. Organizations and governments may also adopt zero waste policies and strategies to promote waste reduction and sustainable resource management. While achieving truly zero waste may be challenging, the principles of zero waste serve as guiding principles for sustainable waste management and environmental stewardship. By embracing a zero waste mindset and taking concrete actions to reduce waste, individuals and communities can contribute to a healthier planet and a more sustainable future.