Featured Product

    EC Issues Update on Paris Agreement Commitments at COP26

    November 13, 2021

    The European Commission (EC) announced support for the consensus reached by over 190 countries after two weeks of intense negotiation at the end of the COP26 UN Climate Conference. Under the Paris Agreement, 195 countries set a target to keep average global temperature change below 2°C and as close as possible to 1.5°C. Parties have agreed to revisit their commitments, as necessary, by the end of 2022 to put the world on track for 1.5°C of warming, maintaining the upper end of ambition under the Paris Agreement. The EC President Ursula von der Leyen noted the progress on the three objectives that were set at the start of COP26: to get commitments to cut emissions to keep within reach the global warming limit of 1.5 degrees, to reach the target of USD 100 billion per year of climate finance to developing and vulnerable countries; and to get agreement on the Paris Rulebook.

    The Paris Agreement was adopted in December 2015, entered into force on November 04, 2016, and has been signed by the 197 United Nations Framework Convention on Climate Change (UNFCCC) Parties, with 191 states and the European Union having now ratified it. The Agreement aims to avoid dangerous climate change by limiting global warming to well below 2°C above pre-industrial levels and by pursuing efforts to limit the temperature rise to 1.5°C and to make financial flows consistent with climate objectives. COP26 completed the technical negotiations on the Paris Agreement Rulebook, which fixes the transparency and reporting requirements for all Parties to track progress against their emission reduction targets. The Rulebook includes the Article 6 (of Paris Agreement) mechanisms that set out the functioning of international carbon markets to support further global cooperation on emission reductions. On climate finance, the agreed text commits developed countries to double the collective share of adaptation finance within the USD 100 billion annual target for 2021-2025 and to reach the USD 100 billion goal as soon as possible. Parties also commit to a process to agree on long-term climate finance beyond 2025. The COP also decided to establish a dialog between parties, stakeholders, and relevant organizations to support efforts to avert, minimize, and address loss and damage associated with climate change. 

    The European Union claims to be a global leader in climate action, having already cut its greenhouse gas emissions by over 30% since 1990, while growing its economy by over 60%. With the European Green Deal, which was presented in December 2019, the European Union further raised its climate ambition by committing to reaching climate neutrality by 2050. This objective became legally binding with the adoption and entry into force of the European Climate Law. The Climate Law also sets an intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to the 1990 levels. This 2030 target was communicated to the UNFCCC in December 2020 as the NDC under the Paris Agreement. To deliver on these commitments, the European Commission presented a package of proposals in July 2021 to make the climate, energy, land use, transport and taxation policies in European Union fit for reducing net greenhouse gas emissions by at least 55% by 2030. In addition, developed countries have committed to mobilize a total of USD 100 billion per year of international climate finance from 2020 until 2025, with European Union being the largest donor, contributing over a third of the current pledges, accounting for USD 27 billion of climate finance in 2020. President von der Leyen recently announced an additional EUR 4 billion from the European Union budget for climate finance until 2027.

     

    Related Links

    Keywords: Europe, EU, Banking, Paris Agreement, COP26, Climate Change Risk, ESG, Low-Carbon Economy, Paris Rulebook, EC

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular

    The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.

    May 10, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8191