This came into effect in 2020. However, this Climate Agreement will only enter into force once more than 55 countries with more than 55% of global emissions have ratified the agreement. 195 countries are participating in the agreement, including the US and China. There is no longer any distinction between developing and developed countries.
Main outcomes
The average global temperature increase should remain well below 2°C, with efforts to further limit the increase to 1.5°C. All 185 countries will measure their targets once every five years against the current scientific knowledge of climate change and increase them if necessary. The agreement is ‘binding’, but that does not apply to the objectives or plans of countries, nor to the amounts for the climate fund. Poorer countries will be able to draw on a fund filled by richer countries for climate change adaptation and emission prevention. Although not binding, it is a fund of USD 100 billion per year in the years 2020-2025. The agreement also establishes a link with the prominent role of actors other than countries, such as the business community, citizens, financial institutions and local governments. These ‘non-state’ actors have played an important stimulating role in the negotiations, and they are also invited to build on them on the platform of the UN Climate Bureau. Carbon pricing The Climate Agreement recognizes the crucial role of carbon pricing in achieving the climate goals, but does not elaborate on this further.
Carbon pricing includes both emissions trading and tax measures.
An important role is played by the Carbon Pricing Leadership Coalition, an initiative of the World Bank and the International Monetary Fund, where we can participate in governments and major international corporations.
During the first day of the CoP, world leaders and international concerns called on companies and countries to put a price on carbon. The Dutch Ministry of Infrastructure and the Environment and companies also support this ‘leadership coalition’.
‘Linking’ different systems
The challenge will be to find a common method for connecting or linking different carbon pricing systems in place in different countries.
A great deal of research is being done on this last subject, including in an ICAP context.
FOLLOW A SERIES OF ARTICLES ABOUT CLIMATE CHANGE AND THE CONSEQUENCES FOR SURINAME AT EYESONSURINAME.
