climatealigned

climatealigned is a term used to describe actions, policies, or investments that are consistent with the goals of limiting global warming. The most widely recognized framework for climate alignment is the Paris Agreement, which aims to keep the increase in global average temperature to well below 2 degrees Celsius above pre-industrial levels, and pursue efforts to limit the temperature increase to 1.5 degrees Celsius. Achieving these goals requires significant transformations across all sectors of the economy and society, reducing greenhouse gas emissions to net zero by mid-century.

In practice, climate alignment can manifest in various ways. For businesses, it might involve setting science-based emissions reduction targets, transitioning to renewable energy sources, developing sustainable supply chains, or investing in green technologies. For governments, it could mean implementing carbon pricing mechanisms, enacting regulations to phase out fossil fuels, promoting sustainable land use, and increasing investment in climate adaptation and resilience. Financial institutions are increasingly considering climate alignment in their investment decisions, assessing the climate risks and opportunities associated with their portfolios.

The concept of climate alignment is gaining prominence as the urgency of the climate crisis becomes more apparent. It provides a framework for evaluating progress towards climate goals and for directing resources towards solutions that are compatible with a low-carbon future. Measuring and verifying climate alignment remains an ongoing challenge, with various methodologies and standards being developed to assess the degree to which different entities or actions contribute to or detract from climate objectives.