On December 12, 2015, the Paris Agreement was adopted by 195 members of the UN Framework Convention on Climate Change (UNFCCC), which sets out the terms of a global agreement to lower greenhouse (GHG) emissions and limit the impacts of climate change. Unlike the Kyoto Protocol, this is not so much a regulatory tool with one clear pathway of actions and regulations set at one point in time, but rather a framework with a portfolio of directions for different aspects of climate change mitigation instruments developing over time. This portfolio includes a framework of national GHG emission reduction plans, regular reviews, clean development financing as well as market and non-market approaches to reducing emissions. The Paris Agreement is a global instrument that will develop and solidify over time.
The key element at the national government level is the concept of Nationally Determined Contributions (NDCs), a process which relies on national governments to formulate, implement, monitor, report and update their own national reduction targets and strategies to achieve them. At the sub-national government level, technical and financial commitments in the Paris Agreement will help to facilitate climate action at the local level. However, non-state actors (such as companies and non-governmental organizations) also have a key role and are strongly encouraged to make their contributions to enable lower GHG emission solutions. The Paris Agreement will enter into force on the 30th day after the date on which at least 55 parties to the UNFCCC accounting for at least 55% of total global GHG emissions deposit their instruments of ratification, acceptance, approval or accession.
The Paris Agreement consists of 29 articles, with both binding and non-binding commitments. The aim of the Paris Agreement is to strengthen the global response to climate change on a time horizon towards 2030 and one of the key commitments by countries is to hold the increase in global average temperature to well below 2°C above pre-industrial levels, while pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels. The Paris Agreement also establishes goals to enhance capacity for climate change adaptation, strengthen resilience and reduce vulnerability to climate change.
While each member nation is required to put forward an NDC, there are no legal requirements for specific national emission reduction targets or actions in the agreement itself beyond the overall global climate change mitigation target. However, certain legally binding commitments have been built into the Paris Agreement. This includes a requirement that countries submit updated plans every five years with increasingly stringent emission reduction targets as part of the NDC, starting in 2020. Countries will also be required to carry out a global stocktake in 2023, and every five years thereafter, to assess their collective progress on emission reductions. Countries will also be required to monitor and report on their national emissions inventory using a common reporting format. In terms of financing, developed countries have committed to mobilizing the financial resources needed to assist developing countries with respect to both mitigation and adaptation.
Even though climate change has been on the global agenda for the past two decades, the Paris Agreement marks a major milestone in global climate change policy, where both developed and developing countries have reached a consensus on taking action and making the necessary investments to move the world towards a low carbon and resilient future. Over the next few months, it will become clear to what extent policy makers from all levels of government will engage with stakeholders to initiate the conversation on what actions will be required at all levels of the economy and government to meet our international climate commitments.
