The Paris Agreement

The Paris Agreement is an international treaty under the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 2015. It represents a significant shift in global climate policy, as it commits all countries—both developed and developing—to take action against climate change. The agreement's central goal is to limit global warming to well below 2°C above pre-industrial levels, with efforts to limit the temperature increase to 1.5°C

Mechanism of the Paris Agreement

The Paris Agreement differs from previous climate agreements (like the Kyoto Protocol) in its flexible and inclusive approach, which allows each country to set its own climate goals and strategies.

The key mechanisms of the Paris Agreement are:

1. Nationally Determined Contributions (NDCs)

Each country that is a party to the Paris Agreement must submit a Nationally Determined Contribution (NDC). NDCs are national climate action plans that outline how each country intends to reduce its greenhouse gas emissions and adapt to the impacts of climate change. Unlike the Kyoto Protocol, which imposed legally binding emission reduction targets only on developed countries, the Paris Agreement allows each country to set its own targets based on its capabilities, resources, and circumstances.

Voluntary and Self-Determined: Countries decide their own NDCs, which makes the agreement more flexible. These commitments are not legally binding, meaning there are no penalties if a country fails to meet its targets. However, the expectation is that countries will take meaningful action based on their NDCs.

Ambition and Progress: The Paris Agreement encourages countries to submit increasingly ambitious NDCs every five years, a process known as the "ratchet mechanism". Over time, countries are expected to enhance their commitments and actions as technology improves, and as more is learned about how to combat climate change effectively.

2. Global Stocktake

To assess progress towards achieving the goals of the Paris Agreement, there is a Global Stocktake every five years. This process evaluates the collective efforts of countries and assesses whether the world is on track to meet the temperature targets of the agreement. The first Global Stocktake took place2023, and subsequent stocktakes will continue at five-year intervals.

It looks at both mitigation (reducing emissions) and adaptation (preparing for the impacts of climate change) to ensure that efforts are balanced and comprehensive. The outcome of the stocktake helps inform countries as they update and enhance their NDCs.

3. Transparency Framework

A key component of the Paris Agreement is the Enhanced Transparency Framework (ETF). This system ensures that countries provide clear and consistent information about their climate actions, making it easier to track progress and compare efforts across nations. Every country must submit regular reports on its greenhouse gas emissions, progress toward its NDC, and measures taken to adapt to climate change.

Independent experts review the reports to assess their accuracy and completeness. This process aims to promote trust and accountability, ensuring that countries are making genuine efforts to meet their climate commitments.

4. Climate Finance

Developed countries are expected to provide financial support to developing countries to help them achieve their climate goals, particularly in adapting to the impacts of climate change. The Paris Agreement reaffirms the commitment made by developed nations to mobilize $100 billion per year by 2020 to assist developing countries in climate action, with plans to scale up this amount over time. At COP29, the new climate finance provision will be passed.

The Green Climate Fund (GCF), established under the UNFCCC, is one of the main mechanisms for delivering climate finance. The GCF provides funding to projects in developing countries that aim to mitigate and adapt to climate change.

5. Carbon Markets and Article 6

Article 6 of the Paris Agreement establishes the framework for international cooperation on carbon markets. This allows countries to work together to meet their climate targets by trading emission reductions or carbon credits.

Countries can trade carbon credits, known as Internationally Transferred Mitigation Outcomes (ITMOs) ITMOs, to meet their NDCs. For example, if one country exceeds its emissions reduction target, it can sell the excess reduction (in the form of credits) to another country that is struggling to meet its target.

The Sustainable Development Mechanism (SDM) allows countries or private entities to generate carbon credits by investing in projects that reduce emissions in another country, such as renewable energy projects or reforestation efforts. These credits can then be used to meet the investor country's NDCs.

The goal of Article 6 is to enhance ambition by allowing countries to leverage international cooperation and market mechanisms to reduce emissions in the most cost-effective ways.

6. Adaptation and Resilience

Recognizing that many countries—especially developing nations—are already facing the impacts of climate change, the Paris Agreement emphasizes the importance of adaptation. Countries are encouraged to implement plans and measures that increase their resilience to climate change.

National Adaptation Plans (NAPs): Countries are encouraged to develop NAPs to prepare for climate risks such as rising sea levels, extreme weather events, and disruptions to food and water supplies.

Adaptation Fund: The Paris Agreement also provides for financial and technical support to help vulnerable countries adapt to these impacts, mainly through the Adaptation Fund, which supports adaptation projects and programs in developing countries.

A New Approach

The Paris Agreement differs from the Kyoto Protocol in several important ways:

Universal Participation: Unlike the Kyoto Protocol, which only imposed binding targets on developed countries, the Paris Agreement requires all countries—both developed and developing—to submit climate action plans (NDCs). This reflects the global nature of the climate crisis and the need for every nation to take action.

Bottom-Up Approach: The Paris Agreement uses a bottom-up approach, where each country sets its own targets, rather than having top-down, internationally imposed targets. This flexibility allows countries to commit to what is realistic for them, which makes it more inclusive.

Focus on Ambition: Rather than penalizing countries for failing to meet targets, the Paris Agreement focuses on encouraging countries to increase their ambition over time. The ratchet mechanism ensures that countries periodically review and strengthen their climate commitments based on progress and technological advancements.

The Paris Agreement represents a monumental shift in international climate policy by engaging all countries in the fight against climate change. Through NDCs, regular Global Stocktakes, a strong Transparency Framework, and innovative mechanisms like carbon markets under Article 6, the Paris Agreement aims to keep global warming well below 2°C and ideally limit it to 1.5°C. Its flexible, inclusive approach—alongside financial support for developing countries and a focus on both mitigation and adaptation—makes it a vital tool in the global effort to address the climate crisis.