By Louise Pryor
In order to meet the net zero goal that supports the Paris Agreement, global emissions will have to be drastically reduced over the coming years. In fact there is a limit on the remaining amount of emissions that the atmosphere can absorb before the global temperature rise will move above the agreed bounds – this limit is the remaining carbon budget. Global emissions will have to be cut drastically to stay within the budge. The question that this paper considers is how the remaining carbon budget should be allocated, and what might be considered “fair” in this context.
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By Colin Wilson and Alastair Gilg
There is much debate about how the UK can secure the necessary investment to deliver the transition to net zero needed to mitigate climate change and how it can be financed. In this paper we look at Government policy and recent commentary from the Climate Change Committee to ask if more needs to be done.
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By Neil Dissanayake
In ACC’s discussion paper 2, we introduced the idea of climate solvency. In this paper we draw a comparison with insurer solvency which highlights the urgency of the situation and the need for credible committed actions to address it. We suggest some practical actions that insurers and investors can take to help in tackling the climate emergency.
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Actuaries regularly use discounting as a tool for determining the present cost of future payments. In ACC discussion paper 1, Louise Pryor considers the applicability of discounting to carbon emissions and whether there are other tools that could be used to address the time value of carbon.
Continue reading “Time value of carbon”