UN To Approve New Economic Rules Of The Paris Agreement
The next UN Climate Change Session (COP25) is opening in Madrid on December 02. The most important topic there will be the issue of « green » finance: adoption of the rules of the new economic mechanism of the Paris Agreement (PS), filling of UN climate funds, used to support developing countries, as well as the standards of « green » bank financing. The UN also continues to urge countries to increase their goals of reducing greenhouse gas emissions amid rising atmospheric concentrations.
COP25 is quite an important event for the international climate process. It takes place literally a month before the start of the Paris Climate Agreement (formally entered into force in November 2016 after ratification by the necessary number of countries). The final rules of the agreement will be approved here. Discussions are now centered around the economic mechanisms of the new agreement, replacing their Kyoto counterparts.
The stumbling block is the question of the possibility of transferring carbon credits from the previous period (which Brazil insists on, in particular), as well as synchronization of the new carbon transfer system with CORSIA (created under the auspices of the ICAO carbon compensation and reduction system for international aviation).
At the conference, countries – leading emitters of greenhouse gases are expected to increase their goals to reduce greenhouse gas emissions, and on the other, to increase their contribution to international climate funds that finance programs to reduce emissions and adapt to climate change in developing countries.
A meeting of representatives of international banks and development institutions will also be held in Madrid, which will discuss new priorities in the field of low-carbon development and requirements for green financing instruments and investment projects. Recall that in mid-November, the European Investment Bank announced a decision to reorient its activities to climate projects, having stopped funding projects in the field of fossil fuels since the end of 2021. Discussions on the mandatory disclosure of climate and socio-environmental information in investment projects are also conducted at the OECD and IFRS levels.