Economic Chronicle: Is Paper Money on Borrowed Time?

The Paris Agreement, signed in 2015, is an international treaty aimed at combatting climate change and limiting global warming to well below 2 degrees Celsius above pre-industrial levels. The agreement was a significant milestone in global efforts to address the urgent threat of climate change, with nearly all countries coming together to commit to taking action.

Under the Paris Agreement, each participating country is required to submit a nationally determined contribution (NDC) outlining their efforts to reduce greenhouse gas emissions and adapt to the impacts of climate change. These NDCs are intended to be updated every five years, with more ambitious targets expected in each subsequent iteration.

As we approach the crucial year of 2025, when countries are due to submit updated NDCs, there is growing anticipation and scrutiny surrounding the level of ambition that will be demonstrated. Many experts argue that current commitments outlined in the initial NDCs fall short of what is necessary to achieve the goals of the Paris Agreement and prevent catastrophic climate change impacts.

One key challenge in increasing ambition lies in aligning national interests with the global imperative to address climate change. While some countries have taken significant steps towards transitioning to low-carbon economies and investing in renewable energy, others face economic and political barriers that make it difficult to prioritize climate action. Striking a balance between national priorities and global responsibility will be crucial in raising ambition levels and ensuring meaningful progress towards the Paris Agreement’s objectives.

Another important aspect of the upcoming NDC submissions is the inclusion of adaptation measures. Climate change is already causing severe impacts around the world, including rising sea levels, extreme weather events, and biodiversity loss. Countries must outline strategies to adapt to these changes and build resilience in vulnerable communities. This includes investments in infrastructure, sustainable agriculture practices, and early warning systems to mitigate the effects of climate-related disasters.

Furthermore, transparency and accountability will play a pivotal role in the success of the Paris Agreement. Robust and accurate reporting mechanisms are needed to track progress and ensure that countries are fulfilling their commitments. Enhanced transparency will foster trust among nations and facilitate the sharing of best practices, ultimately driving collective action towards a sustainable future.

In conclusion, as the deadline for updated NDCs approaches, there is a pressing need for countries to increase their ambition in addressing climate change. The Paris Agreement provides a framework for global cooperation, but it requires stronger commitments and actions to effectively tackle the urgency of the climate crisis. By aligning national interests with shared responsibility, prioritizing adaptation measures, and ensuring transparency and accountability, the international community can work together to make significant strides towards a more sustainable and resilient world.

David Baker

David Baker