Global stocktake

What Is Global Stocktake?

The Global Stocktake is a crucial mechanism under the Paris Agreement designed to periodically assess the collective progress countries are making toward achieving the agreement's long-term goals. Falling under the broader category of Climate Finance and Governance, it provides a comprehensive evaluation of global climate action. Established by Article 14 of the Paris Agreement, the Global Stocktake aims to identify where the world stands on limiting global warming, building climate resilience, and aligning financial support with climate objectives⁴⁶, ⁴⁷. It acts as an inventory, helping nations and stakeholders understand collective achievements and pinpoint areas where further effort is required to accelerate climate action⁴⁵.

History and Origin

The concept of the Global Stocktake was formally established as part of the Paris Agreement, which was adopted in 2015 at the 21st Conference of the Parties (COP21). This landmark international treaty saw nearly 200 countries agree to limit global warming to well below 2°C above pre-industrial levels, while aiming for 1.5°C. ⁴⁴To ensure accountability and foster ambition, the agreement mandated a recurring, comprehensive assessment process. The first-ever Global Stocktake commenced in 2021 with data collection, followed by a technical assessment phase in 2022, and concluded at COP28 in Dubai in December 2023. ⁴¹, ⁴², ⁴³This assessment was built on information gathered from various sources, including Nationally Determined Contributions (NDCs), scientific studies from bodies like the Intergovernmental Panel on Climate Change (IPCC), and national reports. ⁴⁰The findings of this initial Global Stocktake lay the groundwork for future climate policies and commitments.

Key Takeaways

• The Global Stocktake is a five-year process to assess collective progress towards the goals of the Paris Agreement.
  ³⁹* It evaluates advancements in reducing greenhouse gas emissions, enhancing adaptation to climate impacts, and securing climate finance.
  ³⁸* The process consists of three phases: information collection and preparation, technical assessment, and consideration of outputs.
  ³⁷* Its primary objective is to inform countries in updating and enhancing their national climate action plans (NDCs).
  ³⁶* The first Global Stocktake concluded at COP28 in December 2023, revealing that the world is not yet on track to meet the Paris Agreement's long-term goals.
  ³⁴, ³⁵

Interpreting the Global Stocktake

The Global Stocktake provides a holistic snapshot of global climate efforts, serving as a critical diagnostic tool rather than a precise quantitative measure. It assesses collective progress across three key areas: mitigation (reducing emissions), adaptation (building resilience to climate impacts), and means of implementation and support (including finance, technology transfer, and capacity building). ³², ³³The outcomes of the Global Stocktake are designed to highlight both successes and, more importantly, the gaps in collective action and support. ³¹For instance, the first Global Stocktake identified a significant mitigation gap, indicating that current trajectories for global emissions are not consistent with limiting temperature rise to 1.5°C. T²⁹, ³⁰he findings also point to shortfalls in adaptation finance and a need for a systems transformation approach across economies.

²⁷, ²⁸The interpretation of the Global Stocktake's findings guides policy adjustments and strengthens international cooperation. It informs countries how they can increase ambition and address equity in their next round of Nationally Determined Contributions (NDCs), which are due by 2025.

²⁵, ²⁶## Hypothetical Example

Imagine the Global Stocktake as an annual performance review for a global company, "PlanetCo," with many departments (countries). The company's overarching goal is to maintain a healthy financial standing and ensure long-term sustainable development by reducing its "debt" (emissions) and investing in "new technologies" (renewable energy).

During the "Global Stocktake," PlanetCo's leadership team, representing the nations, reviews all department reports on their emission reduction efforts, investments in green projects, and support provided to smaller, less resourced departments. They find that while some departments have made good progress on reducing their operational carbon footprint (e.g., transitioning from fossil fuels to solar power), overall, the company is still accumulating debt too quickly.

The stocktake report indicates that despite individual efforts, the collective "debt reduction" (emission cuts) is insufficient to meet the company's "financial stability targets" (global temperature limits). It also highlights that the larger, more profitable departments (developed nations) are not providing enough "investment capital" (climate finance) to the smaller, struggling departments (developing countries) to help them modernize and reduce their own operational debt. This collective assessment then serves as a clear directive for all departments to submit more ambitious "business plans" (NDCs) for the next review cycle, emphasizing increased investments and stronger collaborative initiatives.

Practical Applications

The Global Stocktake serves several critical practical applications in the realm of international climate policy and governance:

• Informing Policy and Ambition: The primary application of the Global Stocktake is to inform the next round of Nationally Determined Contributions (NDCs). Its findings provide governments with the necessary information to update and enhance their climate actions and support, ensuring increasing ambition over time.
  *²³, ²⁴ Identifying Gaps: It precisely identifies collective gaps in achieving the Paris Agreement's goals across mitigation, adaptation, and financial support. For instance, the first Global Stocktake underscored the significant gap in global emissions reductions required to stay within the 1.5°C limit.
• ²² Guiding Financial Flows: The stocktake highlights where climate finance is falling short and where resources need to be directed. It emphasizes the need for increased financial flows, particularly to developing countries, to support their climate efforts and build resilience.
• ²⁰, ²¹ Strengthening International Cooperation: By revealing collective progress and shortfalls, the Global Stocktake fosters greater international cooperation and accountability among parties. It encourages shared responsibility and collaborative solutions for global challenges.
• Catalyzing Systems Transformation: The findings from the Global Stocktake often call for broad "systems transformations" across various sectors, including energy, agriculture, and industry, to align with low greenhouse gas emissions and climate-resilient development. A ¹⁸, ¹⁹key outcome of the first Global Stocktake at COP28 was the first-ever call in a formal COP outcome for a "transition away from fossil fuels". Th¹⁶, ¹⁷e official UN Framework Convention on Climate Change (UNFCCC) maintains an information portal for all Global Stocktake inputs and outputs, serving as a transparent resource for stakeholders worldwide. UNFCCC Global Stocktake Information Portal.

#¹⁵# Limitations and Criticisms

While the Global Stocktake is a pivotal tool for assessing climate progress, it faces several limitations and criticisms. One primary concern is that despite its comprehensive assessment, the Global Stocktake itself does not impose binding obligations on countries to achieve their Nationally Determined Contributions (NDCs). The outcomes are intended to inform and encourage, rather than enforce, which some argue might limit its effectiveness in driving sufficient climate action.

Another limitation lies in the self-reporting nature of much of the input data. While the process aims for a balanced and comprehensive collection of information, it relies heavily on reports from individual parties, which may vary in their level of detail and accuracy. Th¹⁴is can make a truly objective assessment challenging. Furthermore, while the Global Stocktake highlights gaps and calls for accelerated action, critics argue that the actual implementation and scaling up of solutions often lag behind the identified needs, particularly concerning climate finance for developing countries. Th¹³e International Monetary Fund (IMF), in an assessment related to the Global Stocktake, noted substantial gaps in both ambition and implementation of climate policies globally. Th¹²e challenge remains in translating the findings of the Global Stocktake into concrete, sufficiently ambitious policies and financial commitments that can meaningfully alter the current trajectory of global warming.

#¹¹# Global Stocktake vs. Nationally Determined Contributions

The Global Stocktake (GST) and Nationally Determined Contributions (NDCs) are two interconnected, yet distinct, components of the Paris Agreement's architecture for addressing climate change. NDCs represent each individual country's specific, self-determined commitments to reduce greenhouse gas emissions and adapt to climate impacts. They are the building blocks of global climate action, outlining national targets and plans, and are typically submitted every five years.

In contrast, the Global Stocktake is a collective assessment that evaluates the sum total of all NDCs and other climate efforts worldwide. It does not assess individual country performance but rather the global collective progress towards the Paris Agreement's long-term goals. The GST acts as a feedback mechanism: it takes stock of what has been achieved collectively and, crucially, identifies the gaps that remain. The outcome of a Global Stocktake is then intended to inform and encourage countries to enhance the ambition of their subsequent NDCs, creating a continuous cycle of increasing climate action and economic growth over time. Wh¹⁰ile NDCs are the "pledges," the Global Stocktake is the "report card" on how well those pledges, in aggregate, are moving the world toward its climate objectives.

FAQs

Q: Who conducts the Global Stocktake?
A: The Global Stocktake is conducted under the authority of the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement (CMA), with support from various subsidiary bodies and technical dialogues involving experts and stakeholders.

⁹Q: How often does the Global Stocktake occur?
A: The Global Stocktake takes place every five years, with the first one concluding at COP28 in 2023, and the next scheduled for 2028.

⁷, ⁸Q: What are the main objectives of the Global Stocktake?
A: The main objectives are to assess collective progress on mitigation of greenhouse gas emissions, adaptation to climate impacts, and the provision of means of implementation and support, including climate finance.

⁵, ⁶Q: What is the significance of the first Global Stocktake at COP28?
A: The first Global Stocktake at COP28 was a critical milestone, as it provided the most comprehensive assessment to date of global climate action since the Paris Agreement. Its findings highlighted that the world is not on track to meet its climate goals and provided a roadmap for countries to enhance their future climate commitments.

³, ⁴Q: How does the Global Stocktake influence national climate plans?
A: The Global Stocktake directly informs countries' next round of Nationally Determined Contributions (NDCs). Its outputs provide insights into collective progress and identify areas for increased ambition, guiding national policymakers as they develop updated climate action plans.¹, ²