Thus, the role of both national governments, along with stakeholders of the global financial system in contributing to the goals of the Paris Agreement has 7 What do we mean by Paris Alignment of Finance Flows report.indd 7 20/09/24 10:08 AM WHAT DO WE MEAN BY PARIS ALIGNMENT OF FINANCE FLOWS? DECODING ARTICLE 2.1(C) OF THE PARIS AGREEMENT • The outcome document highlighted that delivering the req. [...] This Agreement, in enhancing the implementation of the Convention, including its objective, aims to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, including by: (a) Holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the tempera. [...] Additionally, the United States of America drew attention to the need to work on enabling environments to attract capital and promote the ‘right incentives for re- orienting investments’.12 Developing countries, on the other hand, specified that the Paris Agreement should not add to their commitments, and not deviate from the commitments of the developed countries under the Convention. [...] However, it emphasizes that the focus on discussions on Article 2.1(c) must remain on the provision of finance from developed to developing countries as part of achievement of the goal as well.23 Importantly, while the EU’s suggestions for operationalizing Article 2.1(c) have long included the development of carbon pricing and emissions trading 16 What do we mean by Paris Alignment of Finance Flow. [...] Figure 5: The financial system is interlinked with climate change Source: CSE 21 What do we mean by Paris Alignment of Finance Flows report.indd 21 20/09/24 10:08 AM WHAT DO WE MEAN BY PARIS ALIGNMENT OF FINANCE FLOWS? DECODING ARTICLE 2.1(C) OF THE PARIS AGREEMENT Many of them have emerged after the adoption of the Paris Agreement and address the call for global alignment of finance flows to its.
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Table of Contents
- WHAT DO WE MEAN BY PARIS ALIGNMENT OF 1
- FINANCE FLOWS 1
- Decoding Article 2.1c of the Paris Agreement 1
- WHAT DO WE MEAN BY PARIS ALIGNMENT OF 3
- FINANCE FLOWS 3
- Decoding Article 2.1cof 3
- Contents 5
- 1. Introduction 7
- Addressing climate change requires a transformation of the global financial system 7
- 2. Paris alignment of finance What does Article 2.1c mean 10
- Historical context of Article 2.1c of the Paris Agreement 10
- Article 2.1c at present Sharm el-Sheikh dialogue on Article 2.1c and Article 9 12
- Beyond UNFCCC 13
- 3. What are the differing interpretations of Article 2.1c within UNFCCC 14
- Interpretation 1 15
- Interpretation 2 15
- Interpretation 3 17
- Article 2.1c and the New Collective Quantified Goal on Climate Finance NCQG 19
- Article 2.1 c as a way to avoid responsibility 20
- 4. Finance and climate change An overview 21
- 4.1 How does the financial system interact with 21
- 4.2 Present scenario of finance flows vis-à-vis 26
- 5. What does Article 2.1c Paris alignment look like in practice 35
- 5.1 Financial actors and Paris alignment 35
- 5.2 Countries and Paris alignment 37
- 6. Emerging questions for consideration 40
- 6.1 The Global North must lead the way in phasing 40
- 6.2 Article 2.1 c cannot divert responsibility for 41
- 6.3 Countries of the Global South need 41
- 6.4 Readiness to respond to top-down Paris 42
- 6.5 Green conditionalities imposed on 43
- 6.6 The limitations of voluntary commitments 44
- References 46
