The Journey of Global Climate Action
The scientific awareness about human-induced climate change gained momentum around 1960s and witnessed fragmented efforts till 1992 to address the rising global warming. In 1992, the fight against climate change formally began on a global scale with the adoption of the United Nations Framework Convention on Climate Change (UNFCCC) at the Earth Summit held in Rio De Janeiro, Brazil. Following this, Conference of Parties (COP) was introduced in 1995, which is held annually and brings together representatives from all signatories to assess the progress and decide on the next steps for mitigation and adaptation towards climate change. Two key milestones that were achieved under UNFCCC were: 1. Kyoto Protocol (1997) – which set legally binding emission reduction targets for developed countries, adopted at COP3. 2. Paris Agreement (2015) – which aimed to limit global temperature rise to below 2°C, with efforts to stay within 1.5°C through voluntary and progressively ambitious commitments from all nations.
Kyoto Protocol
Under the Kyoto Protocol, developed countries were assigned specific emission reduction targets relative to their 1990 emission levels. Countries were required to reduce their emissions in line with the binding commitment periods:
| Phase | Duration | Emission Reduction Target | Participating Countries |
|---|---|---|---|
First Commitment Period | 2005 to 2012 | Reduce emissions by 5% below 1990 levels | 37 developed countries (e.g., EU, Japan, Canada) |
Second Commitment Period | 2013 to 2020 | Revised targets for participating developed countries below 1990 levels:
• European Union-20%
• Australia- 0.5%
• Norway- 16%, etc. | Some countries from the first phase (e.g., EU, Japan) |
The Kyoto Protocol introduced global mechanisms such as Clean Development Mechanism (CDM) and Joint Implementation (JI) along with and Emissions Trading, which allowed countries to invest in projects in other countries and trade emissions to meet their targets under Kyoto Protocol. These topics will be explored further in our upcoming insights. The Kyoto Protocol became obsolete once it was replaced by the Paris Agreement in 2015. The key reasons for Kyoto’s discontinuation include the US withdrawal, its focus on developed countries while excluding large emitters including India and China, its rigid structures. These limitations led to the adoption of the more inclusive and flexible Paris Agreement.
Paris Agreement
The Paris Agreement, adopted in 2015, is a global accord which encourages countries to set and update their climate action plans, known as Nationally Determined Contributions (NDCs) as per their own development priorities. Simply put, it facilitates every country to develop its respective emission reduction plan based on their national circumstances, capabilities and priorities. These plans are updated by countries every five years with newer NDC representing higher level of ambition compared to previous targets. To ensure progress, these NDC updates are evaluated through the Global Stocktake, a review process that takes place every five years to assess the collective efforts and track the achievement of global climate goals. The first Global Stocktake in 2023 highlighted gaps in emissions reduction, adaptation, and finance, calling for stronger action. Key Differences Between the Kyoto Protocol and Paris Agreement:
| Category | Kyoto Protocol | Paris Agreement |
|---|---|---|
Adopted Year | 1997 | 2015 |
Participation | Only developed countries | All countries (developed & developing) |
Emission Targets | Legally binding targets for developed countries | Voluntary targets (Nationally Determined Contributions) |
Long-term Goal | Emphasis on reducing emissions, without a defined long-term global goal | Limit global warming to well below 2°C, with efforts to limit it to 1.5°C by the end of the 21st century |
Market Mechanisms | Carbon trading, Clean Development Mechanism (CDM) | Article 6.2 & Article 6.4 |
Focus areas | Mainly focused on mitigation with limited emphasis on adaptation | Strong focus on adaptation, especially for vulnerable nations |
As the global climate journey continues, evolving commitments and collective efforts under the Paris Agreement remain crucial in shaping a sustainable future for all. Our upcoming insights will explore the implications of the Paris Agreement on businesses.
