Did the Paris Agreement Plant the Seeds of a Climate Consistent International Financial Regime?

12 Pages Posted: 28 Jul 2016 Last revised: 4 Mar 2017

See all articles by Dipak Dasgupta

Dipak Dasgupta

TERI School of Advanced Studies

Espagne Etienne

CIRED, International Research Center on Environment & Development, France

Jean-Charles Hourcade

CIRED, International Research Center on Environment & Development, France

Irving Minzer

John Hopkins University, School of Advanced International Studies

Seyni Nafo

African Group at the UNFCCC

Baptiste Perissin-Fabert

Commissariat Général au Développement Durable (CGDD)

Nick Robins

HSBC

Alfredo Sirkis

Centro Brasil no Clima (CBC)

Date Written: July 28, 2016

Abstract

Finance has been critical to the development of interest and momentum concerning the Paris Agreement, which emerged from COP21. However, a quick scan of the accord could lead many to derive a disappointing picture because of the absence of practical commitments to financial devices that can limit the risks of climate change. We support the opposite view that the text marks a new departure by committing countries to "making financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development". This was matched by parallel developments such as the Financial Stability Board’s launch of a new Task Force on climate disclosure. We argue that, further steps now need to be taken within the broader context of financing the new model of prosperity laid out in the UN Sustainable Development Goals (UN, September 2015). At a time of increasing financial uncertainty and inadequate investment in the real economy, putting in place a framework for financing the transition to a low-carbon, resilient model of development is now an economic imperative – and an immense opportunity. Mitigating the systemic risks of climate change while putting the global financial system on a path toward balanced and sustainable development, is in the long-term strategic interests of both industrialized and developing countries and we suggest what practical steps can be accomplished in a near future in this direction.

Keywords: COP 21, Paris Agreement, Climate Finance

JEL Classification: Q5, Q58, F53

Suggested Citation

Dasgupta, Dipak and Etienne, Espagne and Hourcade, Jean-Charles and Minzer, Irving and Nafo, Seyni and Perissin-Fabert, Baptiste and Robins, Nick and Sirkis, Alfredo, Did the Paris Agreement Plant the Seeds of a Climate Consistent International Financial Regime? (July 28, 2016). FEEM Working Paper No. 50.2016. Available at SSRN: https://ssrn.com/abstract=2815396 or http://dx.doi.org/10.2139/ssrn.2815396

Dipak Dasgupta

TERI School of Advanced Studies ( email )

IHC Complex
Lodhi Road
New Delhi, 110003
India

Espagne Etienne (Contact Author)

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France

Jean-Charles Hourcade

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France

Irving Minzer

John Hopkins University, School of Advanced International Studies ( email )

Seyni Nafo

African Group at the UNFCCC ( email )

Baptiste Perissin-Fabert

Commissariat Général au Développement Durable (CGDD) ( email )

Nick Robins

HSBC ( email )

Fourth Floor, 8 Canada Square
Canary Wharf, London, E14 5HQ
United Kingdom

Alfredo Sirkis

Centro Brasil no Clima (CBC)

Av. Marechal Camara
60 Edifício Orly - sala 41
Rio de Janeiro, 20020-080
Brazil

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