The glossary provides more information on some of the key terms we use on MyFairMoney. It also describes criteria, methods and data sources in more detail. This will help you dive deeper into the topic of sustainable investment!
Scenario/ Climate Scenario
Scientists develop predictions for the future development of the climate. These calculations include many factors and are therefore very complex.
It is important to know that it is not about predicting the local temperature in Berlin on 16.6.2052 like a weather forecast. Instead, it is about predicting, for example, the average temperature or precipitation of an entire climate zone in a period in the future.
These predictions can then be broken down to individual factors. In order to keep certain assumptions of a model, for example, a fixed amount of emissions must not be exceeded. This can then be translated into maximum production in certain sectors. PACTA works with these specifications.
PACTA uses climate scenarios developed by the International Energy Agency (IEA for short). They describe different paths the world could take in the future:
- The Sustainable Development Scenario, for example, describes how global warming can be kept below 1.8 degrees Celsius with a probability of 66%. The energy sector and industry are of great importance for this. The scenario calculates net zero emissions in 2070. More information on the SDS can be found at the IEA.
An overview of important scenarios can be found in the IEA's World Energy Outlook.