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Institute
The 2015 Paris Agreement (PA) has been widely hailed as a diplomatic triumph and a breakthrough in global climate cooperation. However, it is commonly accepted that the PA's collective goal—keeping global warming “well below” 2°C above preindustrial levels—remains ambitious. Making matters even more challenging, in 2017, global CO2 emissions resumed growth after 3 years of near standstill. In 2018, this growth accelerated. It is therefore extremely important that the PA's institutional architecture meet expectations concerning its ability to induce member countries to promise and deliver emissions reductions. This study offers a review of the rapidly growing literature on the PA, to assess its strengths and weaknesses, its significance, and its prospects. We focus on evaluations of its institutional structure and its ability to induce member countries to implement policies. We frame the issues as a trilemma: the challenge of simultaneously satisfying all three main conditions for effectiveness—broad participation, deep commitments, and satisfactory compliance rates. Based on our review, we conclude that the key challenge for the PA will likely be to facilitate sufficiently fast ratcheting‐up of nationally determined contributions, while keeping compliance rates high.
Using a novel agent-based model, we study how US withdrawal might influence the political process established by the Paris Agreement, and hence the prospects for reaching the collective goal to limit warming below 2 degrees C. Our model enables us to analyze to what extent reaching this goal despite US withdrawal would place more stringent requirements on other core elements of the Paris cooperation process. We find, first, that the effect of a US withdrawal depends critically on the extent to which member countries reciprocate others' promises and contributions. Second, while the 2 degrees C goal will likely be reached only under a very small set of conditions in any event, even temporary US withdrawal will further narrow this set significantly. Reaching this goal will then require other countries to step up their ambition at the first opportunity and to comply nearly 100% with their pledges, while maintaining high confidence in the Paris Agreements institutions. Third, although a US withdrawal will first primarily affect the United States' own emissions, it will eventually prove even more detrimental to other countries' emissions.
Although the Paris Agreement arguably made some progress, interest in supplementary approaches to climate change co-operation persist. This article examines the conditions under which a climate club might emerge and grow. Using agent-based simulations, it shows that even with less than a handful of major actors as initial members, a club can eventually reduce global emissions effectively. To succeed, a club must be initiated by the ‘right’ constellation of enthusiastic actors, offer sufficiently large incentives for reluctant countries and be reasonably unconstrained by conflicts between members over issues beyond climate change. A climate club is particularly likely to persist and grow if initiated by the United States and the European Union. The combination of club-good benefits and conditional commitments can produce broad participation under many conditions.