Glossary
Paris-aligned
"Paris-aligned" refers to an action, initiative, or goal that is consistent with the ambitions of the Paris Agreement. The Paris Agreement, signed in 2015, unites 196 nations in the global effort to combat climate change by holding global warming to well below 2 degrees Celsius above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees Celsius. The term "Paris-aligned" is frequently used in the green energy, renewable energy, and carbon accounting industries to signify initiatives that are in line with these temperature goals.
A strategy or initiative that is Paris-aligned will aim to significantly reduce greenhouse gas emissions. Such strategies will often encompass a variety of measures across different areas. In the green energy industry, this could mean a shift from reliance on fossil fuels towards an energy mix dominated by renewable sources such as wind, solar, and hydro-power. In other industries, it may involve making changes to operational processes in order to become more energy-efficient or investing in carbon offset projects to counterbalance emissions that cannot currently be avoided.
An example of a Paris-aligned strategy in the carbon accounting industry might be a commitment by a company to become carbon neutral or to implement effective carbon pricing across all its operations. These actions directly support the global effort to limit global warming, as they encourage the reduction of greenhouse gas emissions.
Climate-aligned or Paris-aligned finance represents another critical aspect of achieving the goals of the Paris Agreement. This refers to the mobilisation of financial resources to fund the transition to a low carbon, climate-resilient economy, in line with the Agreement’s goals. Investors, banks, and other financial institutions play an increasingly essential role in this evolution, by shifting their portfolios away from fossil-based industries and towards green, low-emission alternatives.
In conclusion, a Paris-aligned strategy or initiative is one that is designed and implemented with the aim of firmly supporting the international commitment to limit global warming, as set out in the Paris Agreement. It represents a shared global responsibility, cutting across all industry sectors and regions of the world. An entity that is Paris-aligned is at the forefront of the global effort to combat climate change and transition to a sustainable future.