CFA Institute Sustainable-Investing Question Answer
The concept of a carbon budget quantifies the:
A.
point in time when net zero CO2 emissions are achieved.
B.
CO2 levels that lead to crossing the Earth’s planetary boundaries.
C.
amount of CO2 to maintain the possibility of temperatures not exceeding a given level.
The Answer Is:
C
This question includes an explanation.
Explanation:
Thecarbon budgetdefines themaximum cumulative amount of CO₂ emissionsallowed tolimit global warming to a specific temperature threshold, such as 1.5 °C or 2 °C above pre-industrial levels. CFA materials emphasize that this budget is afinite global allocationof emissions that can be emitted while still maintaining areasonable chanceof staying within these warming limits. It is distinct from reaching net zero at a specific date (A) or the broader planetary boundary concept (B), although it relates to climate stability within those boundaries.
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