CEP Climate Change Strategy & Carbon Management Flashcards
6 cards from real CEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CEP Climate Change Strategy & Carbon Management flashcards as text
What is the primary purpose of an internal carbon price (ICP) in corporate strategy?
Answer: To incentivize internal emissions reductions by assigning a cost to carbon in business decisions
An internal carbon price assigns a monetary value to carbon emissions within an organization to drive investment decisions and operational changes toward lower-carbon options.
Which mechanism under the Paris Agreement allows countries and companies to trade emissions reductions internationally?
Answer: Article 6 cooperative approaches
Paris Agreement Article 6 establishes frameworks for voluntary cooperation between parties to achieve NDCs, including international transfer of mitigation outcomes.
What does a 'net zero' target require compared to 'carbon neutrality'?
Answer: Net zero requires deep emissions cuts across all scopes before using limited offsets, while carbon neutrality can rely heavily on offsets
Net zero demands substantial absolute reductions across the value chain with only minimal residual emissions neutralized by permanent removals, whereas carbon neutrality more broadly allows offsetting.
What is a Renewable Energy Certificate (REC) used for in corporate sustainability programs?
Answer: Representing the environmental attributes of one megawatt-hour of renewable electricity generation
A REC represents proof that one MWh of electricity was generated from a renewable energy source, allowing buyers to claim renewable electricity use for reporting purposes.
Which of the following best describes 'physical risks' in TCFD climate risk disclosure?
Answer: Risks from climate-related physical events like flooding, drought, or sea-level rise affecting assets and operations
TCFD physical risks include acute risks (extreme weather events) and chronic risks (long-term shifts like sea-level rise and temperature changes) that can damage assets and disrupt operations.
What is the primary role of a carbon offset project under the Verified Carbon Standard (VCS)?
Answer: To generate verified carbon credits by reducing or removing GHG emissions that would not have occurred otherwise
VCS projects generate Verified Carbon Units (VCUs) by demonstrating real, measurable, and additional GHG reductions or removals beyond business-as-usual baselines.