Paris Agreement

Definition

The Paris Agreement is a legally binding international treaty aimed at addressing climate change and its impacts by limiting global warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit the temperature increase to 1.5 degrees Celsius. It brings together nations to take collective action and implement strategies that promote sustainability, making it a vital aspect of corporate social responsibility and environmental management efforts worldwide.

5 Must Know Facts For Your Next Test

1. The Paris Agreement was adopted on December 12, 2015, during the 21st Conference of the Parties (COP21) in Paris, France.
2. As of now, nearly every country in the world is a party to the Paris Agreement, showcasing a global commitment to combat climate change.
3. Countries are required to submit their Nationally Determined Contributions (NDCs) every five years to outline their climate action plans and ambitions.
4. The agreement emphasizes a collaborative approach, encouraging developed nations to support developing nations in their transition toward sustainable practices through financial and technical assistance.
5. The long-term goal of the Paris Agreement is not only to curb emissions but also to enhance adaptive capacity and resilience against climate impacts.

Review Questions

• How does the Paris Agreement enhance corporate social responsibility among businesses worldwide?
  • The Paris Agreement encourages businesses to adopt sustainable practices by promoting transparency in reporting emissions and setting ambitious targets for reducing their carbon footprint. As companies align with the goals of the agreement, they demonstrate accountability and commitment to sustainability. This alignment fosters trust among consumers and investors who increasingly prioritize environmentally responsible companies.
• In what ways do Nationally Determined Contributions (NDCs) under the Paris Agreement reflect global efforts toward sustainability?
  • Nationally Determined Contributions (NDCs) serve as individual country commitments to combat climate change by outlining specific actions they plan to take. These contributions reflect each country's circumstances, capabilities, and responsibilities, creating a tailored approach to sustainability. By requiring regular updates and progress reports on NDCs, the Paris Agreement promotes continuous improvement and accountability in global climate action.
• Evaluate the potential challenges and opportunities presented by the Paris Agreement for international businesses aiming for carbon neutrality.
  • The Paris Agreement presents significant challenges for international businesses as they navigate stringent regulations and the need for substantial investments in sustainable technologies. However, it also creates opportunities for innovation and leadership in sustainability practices. Companies that proactively adapt to these requirements can differentiate themselves in the market, attract environmentally conscious consumers, and position themselves favorably as leaders in the transition toward a low-carbon economy.

Related terms

Climate Change: Long-term alterations in temperature, precipitation, wind patterns, and other elements of the Earth's climate system, primarily driven by human activities such as fossil fuel burning.

Sustainable Development Goals (SDGs): A collection of 17 global goals set by the United Nations in 2015 aimed at addressing various global challenges, including those related to poverty, inequality, climate change, environmental degradation, and peace and justice.

Carbon Neutrality: The state of achieving net-zero carbon emissions by balancing emitted carbon with an equivalent amount of carbon offset or removal from the atmosphere.