Read more articles from the January 2016   Energy Update newsletter >

First, the Agreement sets aspirational goals to limit worldwide increases in temperature. Specifically, the text seeks to limit the increase in the global average temperature to “well below 2 degrees Centigrade above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Centigrade above pre-industrial levels.” The 1.5-degree centigrade commitment seemed unachievable as recently as a few months ago, and constitutes a significant improvement on the 2-degree centigrade increase that nearly 200 countries had previously agreed to during the 2009 Copenhagen Climate Conference.  

Second, the Agreement prompts countries to set national targets for reducing greenhouse gases, or GHGs. Before the Paris Conference began, more than 180 countries had submitted pledges to cut or curb their carbon emissions (in the form of “intended nationally defined contributions” or INDCs). Scientists concluded, however, that these INDCs would lead to a 2.7-degree centigrade rise or higher. As part of the deal, countries will be required to submit new emissions-reduction pledges every five years, starting in 2020. While the Agreement does not require countries to increase commitments for emission reductions, the goal is to pressure them to consider stronger action over time, and ideally, as emissions reduction technology becomes more readily available at lower price points.

Third, the Agreement establishes transparency rules to help pressure countries into achieving their proposed emissions reductions. These rules will also help others verify that nations are constraining their emissions in line with their commitments. Given the absence of binding requirements concerning actual emissions, we presume that international pressure, rather than international law, would be brought to bear against non-compliant countries.

Fourth, the Agreement encourages developed countries to offer financial support to poorer countries to help them reduce their emissions and adapt to climate change. This is because poorer countries will need help in adopting clean energy and adapting to climate impacts from increased global temperatures. Although the Agreement’s $100 billion annual commitment by developed countries to poorer countries is non-binding, this provision is likely to further pressure developed countries to assist poorer countries with climate change adaptation costs and clean energy development projects. The Agreement provides that the countries “intend to continue their existing collective mobilization goal through 2025,” meaning that the flow of $100 billion a year will continue beyond 2020. By 2025 the Agreement contemplates an increase of that amount, “from a floor of $100 billion.”

Fifth, the Agreement addresses, albeit in limited fashion, small island nations’ concerns regarding loss and damage from climate change. However, no liability or compensation provisions in favor of island nations were included in the final draft.