|European Union Carbon Market Glossary|
The text of the Paris Agreement was adopted at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (COP 21), which took place in Paris from 30 November to 12 December 2015.
Parties to the Convention include, among others, the European Union and its Member States.
Paris Agreement sets out a qualitative long-term emissions reduction goal in line with the objective to keep the global temperature increase well below 2°C and to pursue efforts to keep it to 1.5°C.
In order to achieve this goal, the Parties will set or update emission reduction targets.
Starting from 2023, Parties will every 5 years undertake a global stocktake, based on the latest science and implementation to date, which will track progress and consider emission reductions, adaptation and support provided.
Paris Agreement has been opened for signature on the 22 April 2016 in New York, and enter into force on the 30th day after the date on which at least 55 parties to the Convention accounting in total for at least an estimated 55% of total greenhouse gas emissions, have deposited their instruments of ratification, acceptance, approval or accession.
On 5 October, the EU formally ratified the Paris Agreement, thus enabling its entry into force on 4 November 2016.
Paris Agreement is the successor of the Kyoto Protocol. However, as opposite to the Kyoto Protocol (where all commitments of Annex B Parties were expressed as absolute economy wide multi-year emission budgets (top-down approach)), Paris agreement contributions are formulated bottom-up.
In the run up to COP21 in Paris Parties were asked to come forward with their intended post-2020 climate contributions (Intended Nationally Determined Contributions - INDCs), which go beyond the current efforts of the respective Party.
The commitments made by all Parties in their INDCs may be expressed, in particular, as:
- a percentage change of emissions over time,
Moreover, Parties may use different target and/or base years.
When it comes to legal form, the outcome of COP 21 consists of:
- a COP decision and
- the actual text of the Paris Agreement (an annex to the COP decision).
Some important aspects are missing in the Paris Agreement. In particular, the Paris Agreement does not:
Paris Agreement differs significantly from its predecessor - the Kyoto Protocol:
1. the scope of the Paris Agreement covers mitigation, adaptation, finance , while the Kyoto Protocol concentrates on mitigation;
2. the Paris Agreement is concluded for an indefinite period (revisions of nationally determined contributions are foreseen every five years) while the Kyoto Protocol consisted of 2 phases: Phase 1: 2008-2012 and Phase 2: 2013-2020;
3. when it comes to the personal coverage the Paris Agreement is much broader than the Kyoto Protocol, since the Paris Agreement requires all Parties to make nationally determined mitigation contributions (NDCs), while under the Kyoto Protocol only developed country Parties had emission reduction targets;
4. Paris Agreement captures by already submitted NDCs 99% of global emissions, while this number for the Kyoto Protocol is 14% in phase 2;
5. each agreement operates on different mechanism: the Paris Agreement uses NDCs as its basic tool and Parties cooperate on a voluntary basis, while the Kyoto Protocol set emissions targets for developed countries;
6. each agreement adopted different approach to enforcement: the Paris Agreement’s approach is expert-based, transparent, non-adversarial and non-punitive while the Kyoto Protocol enforces its obligations through suspension from emissions trading and additional emissions reductions in second commitment period;
7. finally, when it comes to transparency, under the Paris Agreement there are similar reporting requirements for all Parties while the Kyoto Protocol applied different reporting requirements for developed and developing countries.
A new market mechanism
Article 6 of the Paris Agreement provides for international emissions trading between Parties and establishes a new market mechanism.
They are subject to robust markets accounting. The new element in Article 6 of the Paris Agreement is the principle of no double counting.
New trading units under Article 6(2) of the Paris Agreement are Internationally Transferred Mitigation Outcomes (ITMO).
30 May 2018
Regulation (EU) 2018/842 of the European Parliament and of the Council on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013
14 May 2018
Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013
Regulation of the European Parliament and of the Council on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013, 26 April 2018, 2016/0231 (COD), PE-CONS 3/18
Proposal for a Council Decision on the signing, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, 2.3.2016 COM(2016) 62 final, 2016/0036 (NLE)
Communication from the Commission to the European Parliament and the Council, The Road from Paris: assessing the implications of the Paris Agreement and accompanying the proposal for a Council decision on the signing, on behalf of the European Union, of the Paris agreement adopted under the United Nations Framework Convention on Climate Change, 2.3.2016 COM(2016) 110 final
Opinion of the Committee on the Environment, Public Health and Food Safety for the Committee on Regional Development on the role of EU regions and cities in implementing the COP 21 Paris Agreement on climate change, 24.11.2017, (2017/2006(INI))
Issues at stake in view of the COP 24 UN Climate Change Conference in Katowice and beyond, Neier Henrik, Neyer Judith, Radunsky Klaus, European Parliament, Policy Department for Economic, Scientific and Quality of Life Policies Directorate - General for Internal Policies, PE 626.092, November 2018
|Last Updated on Saturday, 20 July 2019 14:27|