Overview
The two major sectors that contribute the most to greenhouse gas emissions are…
Energy and Agriculture
Between residential appliances and carbon capture and storage, which have a higher marginal abatement cost?
Carbon capture and storage
Will adaptation still be needed if the Paris agreement goal of keeping the temperature increase to under 1.5 degrees Celsius is achieved?
Yes.
What are the three sectors the ESG Finance is covering?
Environment, Social, and Governance
The “Net-Zero” means that…
Net emission of greenhouse gas must not increase. More specifically, it means achieving a balance where the amount of greenhouse gas released into the atmosphere is equal to the amount removed or sequestered.
Explain why non-market approaches (e.g. information and knowledge sharing, innovation, etc.) for AFOLU emissions mitigation policies are more appropriate than market-based measures (such as carbon pricing)?
Market-based approaches such as carbon pricing need a mechanism of GHG emission measurement and verification, which are complex for agriculture activities.
How does adaptation investment affect debt and growth?
Front-loaded adaptation investment, if financed by additional public finance, could increase debt in the short term. But once climate risks materialize, adaptation capital lowers negative disaster impacts and contributes to restoring outputs.
What typically happens to projected bank capital in a stress test scenario?
Bank capital declines relative to the baseline.
Why do low-income and less developed countries tend to suffer more from natural disasters and impacts of climate change (name at least two reasons)?
(1) Small states and small islands are particularly exposed to natural disasters.
(2) Lower-income countries tend to have more fragile infrastructure.
(3) Lower-income countries tend to have weaker organizational capacities, which could negatively affect post-disaster reconstruction effort.
Name at least two disadvantages of fossil fuel subsidies.
They are inefficient, resulting in resource misallocation; They lead to emission of GHG and other pollutants beyond social optimum; They are typically regressive
Considering the debt dynamics equation, identify at least two channels through which a natural disaster could affect public debt.
Higher interest rate; lower growth; higher primary budget deficit; exchange rate depreciation.
Of the three scopes (The Greenhouse Gas Protocol), which one refers to emissions from upstream and downstream activities in a company's value chain?
Scope 3.
Since industrial revolution, the Earth surface temperature grows rapidly because of the correlation between temperature and ...?
Greenhouse gas concentration (or carbon dioxide concentration) in the atmosphere
Name at least two advantages and two disadvantages of implementing ETS.
(+) Can be economically efficient; Can generate revenue; Can be more politically acceptable than carbon tax
(-) Can have distributional impacts; Can be challenging to implement for capacity constrained countries; Can be subject to price volatility
National adaptation plans can be organized around four essential blocks: (i) Risk/gap assessment; (ii) Identifying adaptation options; (iii) Implementation strategies (mainstreaming); and (iv) …
Monitoring, evaluation, and reporting.
An abrupt shift in asset valuations due to a sudden change in expectations regarding future risks is also known as ….
Minsky moment.