At the Conference of the Parties 21 (COP 21) in Paris on December 12th, 2015, the international community reached one of the most significant milestones in the combat against climate change and global warming. Indeed, 195 Parties entered a legally binding international treaty on climate change called the Paris Agreement. The supreme purpose of the Agreement is to keep the increase in the global average temperature below 2o C or limit the temperature increase to 1.5o C above pre-industry levels. 

The Paris Agreement emphasizes several themes, including Nationally Determined Contributions (NDCs), Long-Term Strategies, Climate Change Education, Training, & Public Awareness, Market and non-Market-Based Approaches, and Financial, Technical, & Capacity Building Supports. The Agreement asks for the developed countries to provide financial and technical support for developing countries in the transition to low-carbon economies.

After the Paris Agreement was adopted, the EU has been the most aggressive in pursuing net-zero objectives. Indeed, the Continent passed various measures, regulations, and frameworks to actualize this goal. These frameworks include the EU Green Deal, EU Taxonomy for Sustainable Activities, Sustainable Finance Disclosure Regulation (SFDR), Carbon Border Adjustment Mechanism (CBAM), the EU Deforestation Regulation (EUDR), the Corporate Sustainability Reporting Directive (CSRD), and others. The U.S. has also stepped up its efforts toward the net zero target by issuing various measures and frameworks, including ten key climate priorities in the Inflation Reduction Act, Climate Change Disclosure Rules from the SEC, and new guidance on the voluntary carbon market. The other developed countries have also stepped up channeling their resources toward a low-carbon economy. 

However, developing countries still need to create work on developing and implementing climate-related policies due to the lack of expertise and resources, given they all are committed to the net-zero target in 2050. Developing countries contribute half of GHG emissions, and they need a little fossil fuel for a while to propel their economic engines. In addition, renewable energy is still expensive. Achieving net-zero targets in developing countries seems to rely on the rich countries’ willingness to provide green technology and financial assistance.

Author: Bao Hoang, Ph.D.