The United Nations Framework Convention on Climate Change (UNFCCC) aims to stabilize greenhouse gas (GHG) emissions to limit man-made climate change.
UNFCCC Objectives: The primary objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.
This goal is articulated in Article 2 of the convention.
Climate Stabilization: The stabilization of GHG emissions is crucial to mitigate the adverse effects of climate change, including extreme weather events, rising sea levels, and disruptions to ecosystems and agriculture.
International Cooperation: The UNFCCC provides a framework for international cooperation to combat climate change, involving commitments from countries to reduce GHG emissions and promote sustainable practices.
CFA ESG Investing References:
The CFA Institute's materials on ESG investing emphasize the importance of understanding global frameworks like the UNFCCC in shaping climate-related policies and investment strategies. The stabilization of GHG emissions is a key aspect of global efforts to mitigate climate change risks and is fundamental to sustainable investing practices.
Conclusion: The UNFCCC's role in stabilizing GHG emissions aligns with global climate goals and supports the transition to a lower-carbon economy, making it a critical consideration for investors integrating ESG factors into their decision-making processes.