ABSTRACT

The Paris Agreement, or Paris Climate Agreement, as the first legally binding global climate change treaty, aims to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius (2°C) above pre-industrial levels and pursuing efforts to limit the temperature increase even further to 1.5 degrees Celsius (UNFCCC, 2022a). The Paris Agreement was adopted by 196 parties at the Conference of the Parties, or COP (the supreme decision-making body of the United Nations Framework Convention on Climate Change – UNFCCC) in Paris on 12 December 2015 and entered into force on 4 November 2016 (UNFCCC, 2022b). The Agreement envisages, promotes, and incentivizes the mitigation of greenhouse gas (GHG) emissions. To achieve the long-term temperature goal, the parties of the Agreement aim to reach the global peaking of GHG emissions as soon as possible and to undertake rapid reductions thereafter in accordance with the best available science to achieve a balance between anthropogenic emissions by sources and removals by sinks of GHGs (United Nations, 2015, Art. 4/1). Each party is expected to prepare, communicate, and maintain successive nationally determined contributions (NDCs) that it intends to achieve (United Nations, 2015, Art. 4/2). The Agreement also aims to foster climate change adaptation by “Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience” (United Nations, 2015, Art. 2/(b)). Furthermore, the Agreement addresses the financial dimensions of fighting climate change by stating the aim of “Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” (United Nations, 2015, Art. 2/(c)). Thus, finance stays at the heart of the Agreement in implementation, recognizing the importance of

mobilizing climate finance from a wide variety of sources, instruments and channels, noting the significant role of public funds, through a variety of actions, including supporting country-driven strategies, and taking into account the needs and priorities of developing country parties.

(United Nations, 2015, Art. 9/3)