Some Important Definitions

As Lalima sips her cup of coffee, she thinks about the risks to her business ambitions.

Tashi smiles. He can read the concern on Lalima’s face.

"Don’t get me wrong, I don’t intend to discourage you. Rather my intention is quite the opposite. Businesses like your father's are categorized as Micro, Small & Medium Enterprises (MSMEs) and MSMEs play a major role in a country’s economy and are vital to implementing measures so that we are climate resilient."

He tries to share a global scenario that captures the essence of the concept.

"Ok, I’m throwing a lot of jargon out there. Here are some definitions that you need to know which are taken from Intergovernmental Panel on Climate Change (IPCC) which is the United Nations body for assessing the science related to climate change."

Tashi holds up his mobile to show some definitions by IPCC.

• Climate adaptation: the adjustment process to actual or expected climate and its effects to moderate harm or exploits beneficial opportunities. In natural systems, the process of adjustment to actual climate and its effects; human intervention may facilitate adjustment to expected climate and its effects.
  • For example, communities in Bangladesh, a flood-prone country, are raising buildings and schools, and installing early warning systems to prepare for and respond to flooding.
• Climate mitigation: A human intervention to reduce emissions or enhance the sinks of greenhouse gases. For example, in Nepal, the government is promoting induction cookstoves to reduce emissions and increase the use of renewable energy sources.
• Climate resilience: The ability of social, economic, and environmental systems to deal with a potentially harmful occurrence, trend, or disturbance by adjusting or reorganizing in ways that preserve their essential function, identity, and structure while also allowing for adaptation, learning, and transformation.
  • For example, in Bhutan, communities employ agroforestry practices to improve soil health and food yields, making them more climate resilient to climate change.”

Lalima with a confused expression on her face inquires.

"There are so many ‘micro’, ‘small’, and ‘medium’ enterprises. How do we categorize these?"