Paris Agreement

The Paris Agreement is a legally binding international climate treaty adopted by 196 parties at COP21 of the United Nations Framework Convention on Climate Change (UNFCCC) on 12 December 2015 in Paris, and in force since 4 November 2016. Its central aim is to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit it to 1.5°C, recognising that this would significantly reduce the risks and impacts of climate change.

According to the IPCC, human activities have already caused roughly 1.1 to 1.3°C of warming above pre-industrial levels, which is why the 1.5°C limit has become the key benchmark for climate ambition.

Key elements of the Paris Agreement

Mitigation: reducing emissions

Parties aim to reach a global peak in greenhouse gas emissions as soon as possible and then reduce rapidly, so as to achieve a balance between anthropogenic emissions by sources and removals by sinks, often described as net-zero emissions, in the second half of this century.

Nationally determined contributions (NDCs)

Each country sets its own climate pledges, known as NDCs, and updates them every five years with increasing ambition. This bottom-up architecture, combined with a global stocktake, is what makes the agreement a ratchet mechanism rather than a fixed set of targets.

Adaptation: preparing for impacts

The agreement seeks to strengthen the capacity to adapt to adverse impacts and foster climate resilience and low-emission development, in a way that does not threaten food production.

Finance: supporting climate action

Developed countries committed to mobilise USD 100 billion per year by 2020 to support developing countries. At COP29 in Baku (November 2024), parties agreed a new collective quantified goal (NCQG) for developed countries to take the lead in mobilising at least USD 300 billion per year by 2035, alongside a broader call to scale up finance from all sources to USD 1.3 trillion per year.

Transparency and tracking progress

An enhanced transparency framework requires parties to report on emissions and on their mitigation and adaptation actions, building trust and allowing progress to be measured against commitments.

Current status (2026)

The Paris Agreement remains the central framework for international climate cooperation, with 195 parties. A notable development is the United States, which formally withdrew from the agreement again, with the withdrawal taking effect in January 2026. The vast majority of countries, the EU among them, continue to pursue their commitments and update their NDCs.

The Paris Agreement and the carbon footprint

The agreement is intrinsically linked to the concept of the carbon footprint. By setting emission reduction goals, it pushes countries and companies to measure and cut their climate impact. Quantifying the greenhouse gas emissions of an activity, product or organisation becomes an essential tool for tracking progress.

Implications for businesses

The agreement has driven unprecedented momentum for corporate climate action, reinforced by:

• Regulatory compliance: governments translate their commitments into reporting and disclosure obligations.
• Investor demand: investors scrutinise climate risk and ESG performance, including carbon footprints.
• Consumer expectations: customers increasingly favour companies that demonstrate credible climate commitments.

In practice, many companies translate the goals of the agreement into science-based targets and decarbonisation plans. At Manglai we help companies measure their carbon footprint and prepare their sustainability reporting. Discover how Manglai can help you.