11 key climate change terms your business needs to know 28 Apr 2021
Confused by carbon jargon? From carbon neutrality to net zero, learn what the sustainability buzzwords mean for your small business.
As momentum builds around tackling the climate emergency, so does the jargon used when talking about sustainability, climate change and the Race to Zero.
Weâ€™ve defined some of the common terms you might encounter on your eco-friendly journey and what they mean for the bigger picture.
The United Nations Climate Change Conference of the Parties is an annual meeting of world leaders focused on addressing the climate emergency we all face. COP (Conference of the Parties) is the decision-making body of the United Nations Framework Convention on Climate Change (UNFCCC).
In November 2021,Â the UK will host the 26thÂ conferenceÂ in Glasgow, known as COP26. It was postponed in 2020 due to the coronavirus pandemic. World leaders and scientists will discuss action towards the goals of the Paris Agreement and work together to share knowledge and progress.
The Paris AgreementÂ
This is a legally binding treaty that countries across the world adopted at COP21 in Paris. 196 countries signed the agreement, including the UK, as part of a commitment toÂ take actionÂ towards reducing the harmful effects of climate change. The central goal is to limit global warming to 1.5 degrees Celsius compared to pre-industrial temperatures.
As part of the agreement, countries submit their plans for climate action every five years, known as NDCs. With COP26 postposed, 2021 will be the first conference of this cycle.
Nationally Determined ContributionsÂ (NDCs) areÂ the actions that countries will take to reduce greenhouse gas emissions to reach theÂ agreedÂ goals. They alsoÂ relate toÂ how a country isÂ building resilience to adapt to the impacts of climate change.
Carbon neutrality is all about balance. A carbon neutral business cancels out the carbon emissions they produce, typically through carbon offsetting. Crucially, this doesnâ€™t always mean that a business is reducing emissions. Emissions are offset through various reduction initiatives like supporting renewable energy solutions or planting trees.
NetÂ zero is often used interchangeably with carbon neutral, but there is a difference. Working towards netÂ zero emissions goes beyond balancing out the emissions being produced. It also involvesÂ taking actionÂ towards reducing the greenhouse gases emitted in the first place to zero (compared to 1990 levels). The UK is working towards reaching netÂ zero by 2050.
Your carbon footprint is the measure of the total greenhouse gas emissions because of your businessâ€™ actions and activities. It estimates the overall emissionÂ of carbon dioxide, methane and other greenhouse gases, for example when youâ€™re making a new product or in the day-to-day running of your company.
Science-based targetsÂ Â
Science-based targets calculate how much and how quickly businesses need to reduce emissions to prevent the effects of climate change and meet the UKâ€™s goal of netÂ zero.
Carbon offsettingÂ Â
From planting trees to investing in renewable energy solutions, carbon offsetting is used to counter the carbon emissions we produce. For instance, companies might commit to planting a tree for every 10 orders.
Carbon creditsÂ Â
A carbon credit is permission to emit carbon dioxide or other greenhouse gases, with one credit equalling one tonne. It was introduced with the aim to regulate and cap carbon emissions, especially of those who are the highest polluters, and the amount available will decrease over time. Companies can be fined for exceeding the cap and can make money by saving and reselling their allowance to others.
As part of plans for netÂ zero, the Government has announced that theÂ UKâ€™s new carbon trading scheme, which follows leaving the EU,Â will launch in MayÂ 2021.
Greenhouse gasesÂ Â
Greenhouse gases like carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) trap heat in the Earthâ€™s atmosphere and contribute to global warming, also known as the greenhouse effect. As part of action to tackle climate change, the UK has committed to halving GHG emissions by 2030.
Race to ZeroÂ
Race to Zero is aÂ global campaignÂ aimed at encouraging leadership and buildingÂ momentum around the netÂ zero target ahead of COP26. Countries and businessesÂ are unitingÂ in meeting goalsÂ and the netÂ zeroÂ commitment.
Source from the FSB