Paris Agreement

The Paris Agreement, a cornerstone in the fight against climate change, drives emissions reductions and global climate action. Learn how it impacts your carbon footprint.

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

Key points of the Paris Agreement

The Paris Agreement establishes a global framework to avoid dangerous climate change with the following key points:

Mitigation: Reducing emissions

The agreement sets out the long-term goal of reaching a global peak in greenhouse gas emissions as soon as possible and then undertaking rapid reductions based on the best available scientific information. The objective is to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century.

Adaptation: Preparing for impacts

The agreement seeks to strengthen the capacity to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production.

Financing: Supporting climate action‍

The agreement reaffirms the commitment of developed countries to mobilize US$100 billion per year by 2020, and encourages other Parties to provide or continue providing such support voluntarily. A new collective quantified goal of mobilizing US$100 billion per year from 2025 onwards is established, taking into account the needs and priorities of developing countries.

Transparency and tracking progress‍

The agreement establishes a reinforced transparency framework for action and support, aiming to build trust and ensure that all Parties are fulfilling their commitments. It includes provisions for monitoring, reporting, and verifying emissions as well as mitigation and adaptation actions.

The Paris Agreement and the Carbon Footprint

The Paris Agreement is intrinsically linked to the concept of the carbon footprint. By setting emissions reduction targets, it compels countries and companies to take steps to reduce their climate impact. The carbon footprint—measuring the greenhouse gas emissions generated by an activity, product, or organization—becomes an essential tool for monitoring progress toward meeting the agreement’s commitments.

Implications for businesses

The Paris Agreement has generated unprecedented momentum for corporate climate action. Companies are increasingly taking steps to reduce their carbon footprint, driven by several factors, including:

• Regulatory compliance: Governments are implementing policies and regulations to meet their Paris Agreement commitments, leading to increased reporting requirements and disclosure of emissions by companies.
• Investor demand: Investors are becoming more concerned about climate risk and a company’s environmental, social, and governance (ESG) credentials, resulting in greater scrutiny of carbon footprints.
• Consumer expectations: Consumers are increasingly aware of climate change and favor companies that demonstrate a commitment to sustainability.

Measuring and managing the Carbon Footprint

In this context, measuring and managing the carbon footprint has become essential for companies seeking to thrive in a global economy that is increasingly low in carbon. Accurate measurement of emissions allows companies to identify reduction opportunities, set science-based targets, and communicate their progress to stakeholders.