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 does 'stranded asset risk' mean in the context of climate change and fossil fuels?
Answer: Assets that may lose economic value prematurely due to climate-related regulations, technology shifts, or market changes
Stranded assets are investments that may suffer unanticipated or premature write-offs, downward revaluations, or conversion to liabilities due to climate transition factors.
In Scope 3 GHG accounting, which category covers emissions from the use of a company's sold products by end customers?
Answer: Category 11 – Use of sold products
GHG Protocol Category 11 captures emissions that occur during the use phase of products sold by the reporting company, often the largest Scope 3 category for manufacturers.
What is a 'climate scenario analysis' as recommended by TCFD?
Answer: An assessment of how different climate futures (e.g., 1.5°C, 4°C warming) could affect a company's business model and finances
TCFD scenario analysis evaluates business resilience under multiple plausible climate futures, helping organizations identify risks and opportunities across transition and physical risk pathways.
Which US federal agency administers the EPA's mandatory greenhouse gas reporting program (GHGRP)?
Answer: Environmental Protection Agency
The EPA administers the GHGRP under 40 CFR Part 98, requiring large emitters (25,000+ metric tons CO2e/year) to report annual GHG emissions.
What does the term 'carbon budget' refer to in climate science and policy?
Answer: The cumulative amount of CO2 that can be emitted globally while limiting warming to a specific temperature threshold
A carbon budget represents the finite amount of cumulative CO2 emissions compatible with limiting global temperature rise to 1.5°C or 2°C above pre-industrial levels.
What is 'leakage' in the context of carbon cap-and-trade systems?
Answer: The shift of emissions-intensive activities to regions with less stringent climate policies, undermining overall reductions
Carbon leakage occurs when cap-and-trade regulations cause businesses to relocate production to unregulated jurisdictions, potentially increasing global emissions despite local reductions.