Provision of climate services—The XDC model

Abstract

With global warming starting to shape economic realities, tools for measuring the impact of climate change mitigation activities and economic activities in general are required to be increasingly precise. Specifically, these tools will be expected to bring more clarity as to whether activities are compatible with a <2 °C-world or not. This fine but decisive distinction between what is climate-friendly and what is climate-friendly enough to support the transition to a <2 °C-world is a question being asked with increasing pressure by a range of stakeholders, such as policymakers, investors and financial institutions. The X-Degree Compatibility (XDC) Model determines the contribution of a single economic entity to global warming under various scenarios. It aims to deliver precise information that will allow for entities to understand their level of climate-friendliness in detail. Since the XDC Model is connected to a climate model and can be connected to further earth system or socioeconomic models, it provides sophisticated options for users to understand how an economic activity exacerbates or relieves climate change. Outputs are expressed in °C, enabling the user to associate results with different levels of climate change and use climate targets as a clear benchmark for assessing the effect of the economic entity’s climate action. Generally, understanding a company’s impact on climate change is valuable information for decision makers and can also give further insights into what kind of climate-related risks the company may face. The XDC Model therefore delivers useful information when it comes to demonstrably steering a company into a <2 °C-world.