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Paris agreement

What Is Paris Agreement?

The Paris Agreement is a landmark international treaty on climate change that aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels, while pursuing efforts to limit the increase to 1.5 degrees Celsius. It falls under the broader category of Global Economic Policy, as its provisions and goals have significant implications for national economies, international trade, and investment strategies worldwide. Adopted by 196 Parties at the UN Climate Change Conference (COP21) in Paris in December 2015, the Paris Agreement became legally binding in November 2016.67, 68 It provides a framework for countries to develop and strengthen their commitments to reduce greenhouse gas emissions and adapt to the impacts of climate change.66

History and Origin

The genesis of the Paris Agreement lies in decades of international efforts to address climate change, building upon earlier initiatives such as the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992. Recognizing the escalating threat of global warming, the international community sought a more comprehensive and legally binding agreement than its predecessors. The agreement was specifically designed to be inclusive, moving beyond the differentiated responsibilities primarily placed on developed countries in earlier accords. After extensive negotiations, the Paris Agreement was adopted on December 12, 2015, at COP21 in Paris, France. It officially entered into force on November 4, 2016, following its ratification by a sufficient number of countries.64, 65 The United States, a significant global emitter, initially joined the agreement but later announced its withdrawal in 2017. However, it officially rejoined the Paris Agreement on February 19, 2021.61, 62, 63

Key Takeaways

  • The Paris Agreement is a legally binding international treaty aimed at limiting global warming.
  • Its primary goal is to keep the global temperature rise this century well below 2°C, ideally to 1.5°C, compared to pre-industrial levels.
    *60 All participating nations are required to submit Nationally Determined Contributions (NDCs), outlining their specific climate action plans.
    *59 The agreement emphasizes global cooperation, financial assistance from developed to developing nations, and an enhanced transparency framework for reporting progress.
    *58 It operates on a five-year cycle of increasing ambition, with countries expected to update their NDCs to reflect greater climate action over time.

57## Interpreting the Paris Agreement

The Paris Agreement is interpreted as a dynamic and evolving framework for global climate action. Rather than imposing specific emission reduction targets on individual countries, it relies on each nation to set its own ambitious Nationally Determined Contributions (NDCs). These NDCs represent a country's voluntary pledge towards climate mitigation and adaptation. The agreement fosters a "ratchet mechanism," where countries are expected to submit progressively more ambitious NDCs every five years. This iterative process is designed to encourage continuous improvement in climate efforts over time. The effectiveness of the Paris Agreement hinges on the collective ambition and implementation of these national plans.

55, 56## Hypothetical Example

Consider a hypothetical country, "Ecotopia," that is a signatory to the Paris Agreement. Ecotopia's initial NDC might commit to a 20% reduction in its total carbon dioxide emissions by 2030, based on 2005 levels. To achieve this, Ecotopia could implement various public policy measures, such as incentives for adopting renewable energy sources like solar and wind power, promoting energy efficiency in industries and homes, and investing in sustainable public transportation. When Ecotopia prepares its updated NDC for the next five-year cycle, it would aim for a more ambitious target, perhaps a 30% reduction by 2035, demonstrating a progression in its climate action in line with the Paris Agreement's spirit of increasing ambition.

Practical Applications

The Paris Agreement has several practical applications across various sectors:

  • Corporate Strategy: Businesses are increasingly aligning their long-term strategies with the goals of the Paris Agreement, leading to greater adoption of Environmental, Social, and Governance (ESG) principles. This involves reducing carbon footprints, investing in sustainable supply chains, and developing green technologies.
  • Financial Markets: The agreement influences financial markets by driving demand for green bonds and other sustainable finance products. Investors are becoming more attuned to climate-related risks and opportunities, impacting asset allocation and portfolio construction.
  • Government Regulation: National governments use the Paris Agreement as a basis for developing and implementing domestic climate policies, including carbon pricing mechanisms, emissions trading schemes, and regulations promoting cleaner industries. The Organisation for Economic Co-operation and Development (OECD) actively supports countries in aligning their policies with the Paris Agreement's goals.
    *54 International Development: The agreement facilitates financial and technological support from developed to developing countries, helping them transition to low-carbon economies and build resilience to climate impacts. This contributes to global sustainable development goals.

53## Limitations and Criticisms

Despite its significance, the Paris Agreement faces several limitations and criticisms. A primary concern is its reliance on voluntary Nationally Determined Contributions (NDCs) rather than legally binding enforcement mechanisms for emission reductions. W52hile countries are obligated to submit NDCs and report on progress, there's no strong enforcement if targets are not met. This raises questions about accountability and whether the agreement can truly achieve its ambitious temperature goals.

51Some critics argue that the collective ambition of current NDCs is insufficient to limit global warming to 1.5°C or even 2°C, predicting a higher temperature increase by 2100 even with full implementation. The50 agreement also places a heavier burden on developed countries for climate finance, which some nations may view as disproportionate. Fur49thermore, the "ratchet mechanism," while intended to increase ambition, relies heavily on political will and international cooperation, which can be susceptible to geopolitical shifts. For instance, the United States' initial withdrawal highlighted the vulnerability of the agreement to domestic political changes.

##48 Paris Agreement vs. Kyoto Protocol

The Paris Agreement and the Kyoto Protocol are both international treaties aimed at addressing climate change, but they differ significantly in their approach and scope. The Kyoto Protocol, adopted in 1997, set legally binding emission reduction targets for developed countries (Annex I Parties) and introduced market-based mechanisms like emissions trading. How46, 47ever, it did not impose obligations on developing countries, including major emitters like China and India, and the United States ultimately did not ratify it.

Th45e Paris Agreement, adopted in 2015, represents a fundamental shift. Instead of top-down, legally binding targets for specific countries, it employs a bottom-up approach where all countries, developed and developing alike, submit their own Nationally Determined Contributions (NDCs). The44se NDCs are voluntary pledges, though the agreement itself is legally binding. The Paris Agreement also has a broader long-term goal of limiting global warming to well below 2°C and pursuing 1.5°C, and it emphasizes adaptation and climate finance more explicitly than the Kyoto Protocol. The P43aris Agreement is a more inclusive and flexible framework, designed to encompass all nations' efforts in combating climate change.

FAQs

What is the primary goal of the Paris Agreement?

The primary goal of the Paris Agreement is to limit the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels, and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius.

42What are Nationally Determined Contributions (NDCs)?

Nationally Determined Contributions (NDCs) are climate action plans submitted by each country under the Paris Agreement. They outline a country's specific targets and policies for reducing greenhouse gas emissions and adapting to the impacts of climate change.

40, 41Is the Paris Agreement legally binding?

Yes, the Paris Agreement is a legally binding international treaty. However, the specific emission reduction targets outlined in each country's NDC are nationally determined and are not legally enforceable under international law.

38, 39How often are countries expected to update their climate commitments?

Under the Paris Agreement, countries are expected to submit new or updated Nationally Determined Contributions (NDCs) every five years, with the aim of increasing their ambition over time.

37How does the Paris Agreement address climate finance?

The Paris Agreement reaffirms that developed countries should take the lead in providing financial resources to assist developing countries in their climate mitigation and adaptation efforts. It also encourages voluntary contributions from other Parties and seeks to mobilize private climate finance.


35, 36LINK_POOL

EXTERNAL_LINKS

  1. UNFCCC - The Paris Agreement
  2. United States Department of State - The United States Officially Rejoins the Paris Agreement
  3. OECD - An integrated approach to the Paris climate Agreement (Checked accessibility - PDF is publicly available and readable)
  4. Council on Foreign Relations - Global Climate Agreements: Successes and Failures

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