Economics of climate change mitigationThe economics of climate change mitigation is part of the economics of climate change related to climate change mitigation, that is actions that are designed to limit the amount of long-term climate change. Mitigation may be achieved through the reduction of greenhouse gas (GHG) emissions and the enhancement of sinks that absorb GHGs, for example forests. The atmosphere is an international public good and GHG emissions are an international externality.
Stranded assetStranded assets are "assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities". Stranded assets can be caused by a variety of factors and are a phenomenon inherent in the 'creative destruction' of economic growth, transformation and innovation; as such they pose risks to individuals and firms and may have systemic implications. Climate change is expected to cause a significant increase in stranded assets for carbon-intensive industries and investors, with a potential ripple effect throughout the world economy.
Biodiversity lossBiodiversity loss includes the worldwide extinction of different species, as well as the local reduction or loss of species in a certain habitat, resulting in a loss of biological diversity. The latter phenomenon can be temporary or permanent, depending on whether the environmental degradation that leads to the loss is reversible through ecological restoration/ecological resilience or effectively permanent (e.g. through land loss).
Abrupt climate changeAn abrupt climate change occurs when the climate system is forced to transition at a rate that is determined by the climate system energy-balance, and which is more rapid than the rate of change of the external forcing, though it may include sudden forcing events such as meteorite impacts. Abrupt climate change therefore is a variation beyond the variability of a climate. Past events include the end of the Carboniferous Rainforest Collapse, Younger Dryas, Dansgaard-Oeschger events, Heinrich events and possibly also the Paleocene–Eocene Thermal Maximum.
