Skip to content

Economic and Business Environment · Environmental Governance

Climate Change and International Environmental Agreements Notes

Updated 11 October 2026 · Fact-checked

Climate change is a long-term rise in global temperature caused mainly by greenhouse gas emissions. Countries respond through treaties: the Rio Summit (1992) set the framework, the Kyoto Protocol (1997) set binding targets for developed countries, and the Paris Agreement (2015) asks every country to set its own targets.

Understand Climate Change and International Environmental Agreements

Climate change means a long-term shift in temperature and weather patterns. Today it is driven mostly by human activity, especially burning coal, oil and gas. This releases greenhouse gases such as carbon dioxide and methane. They trap heat in the atmosphere, which is called the greenhouse effect, and the earth warms.

The effects are rising sea levels, melting glaciers, floods, droughts and heatwaves. Businesses feel this through damaged assets, supply chain breaks and new rules on emissions. That is why the topic sits in the Business Environment part of your paper.

No single country can fix this, so nations negotiate treaties. The Rio Earth Summit (1992) led to the UNFCCC, the United Nations Framework Convention on Climate Change. It set the principle of common but differentiated responsibilities: all countries must act, but richer countries, which emitted more in the past, must do more.

The Kyoto Protocol (adopted 1997) turned this into legally binding emission cuts, but only for developed countries. Developing countries such as India had no binding targets. The Paris Agreement (2015) replaced this split with a common approach. Every country submits its own plan, called a Nationally Determined Contribution (NDC). The agreement aims to keep global warming well below 2°C above pre-industrial levels and to pursue efforts to limit it to 1.5°C.

Carbon markets let emissions be traded. One carbon credit represents one tonne of carbon dioxide (or its equivalent) reduced or removed. A company that cuts emissions below its limit can sell spare credits. A company that overshoots can buy credits. This puts a price on carbon and rewards cleaner methods.

India's commitments include its NDCs under the Paris Agreement and the 2070 net-zero goal announced in 2021. India has also pursued expansion of renewable energy, and it has a domestic carbon market framework under development. Learn the broad direction of these commitments, and check the latest figures in your study material before the exam.

Key rules to remember

Carbon credit unit
1 carbon credit = 1 tonne of CO₂ (or CO₂ equivalent) reduced or removed
Core definition for carbon market questions.
Kyoto vs Paris: who is bound
Kyoto = binding targets for developed countries; Paris = nationally determined targets for all countries
Most common comparison question.
Paris temperature goal
Well below 2°C, pursue 1.5°C above pre-industrial levels
Write both figures.
UNFCCC principle
Common but differentiated responsibilities
Everyone acts; richer countries carry more responsibility.
Cap and trade logic
Emissions above cap → buy credits; emissions below cap → sell credits
Explains how a compliance carbon market works.

How to solve Climate Change and International Environmental Agreements questions

Use this method for definition, comparison and short-note questions on climate agreements.

  1. 1Read the command word: define, differentiate, explain or write a short note.
  2. 2Start with one line on the problem: greenhouse gases cause global warming.
  3. 3Name the agreement and its year, and say what it set up.
  4. 4State the key feature: who is bound, what is the target, is it legally binding.
  5. 5For comparison questions, use the same points for both sides, such as year, coverage, nature of targets and approach.
  6. 6Link to business or India where the question allows, such as carbon credits or India's NDC and net-zero goal.
  7. 7Close with a one-line conclusion on why the agreement matters.

Quickest way: Timeline and tag method

When to use it: When you have under 5 minutes for a question or must revise fast.

  1. Remember the sequence: Rio 1992, Kyoto 1997, Paris 2015.
  2. Tag each with one phrase: Rio = framework, Kyoto = binding for developed, Paris = every country's own pledge.
  3. Tag carbon credit as one tonne of CO₂ traded.
  4. Tag India as NDCs plus net zero by 2070.
  5. Write answers in points under these tags.

Common mistakes in Climate Change and International Environmental Agreements

  • Saying Kyoto bound all countries.

    Students remember 'binding' but forget who was covered.

    Fix: Write that Kyoto's binding targets applied only to listed developed countries.

  • Saying Paris targets are legally binding emission cuts like Kyoto.

    Both are called agreements, so students assume they work the same way.

    Fix: Say Paris requires every country to set and report its own NDC; the targets themselves are nationally determined.

  • Mixing up the years of Rio, Kyoto and Paris.

    Three summits with similar-sounding names.

    Fix: Memorise 1992, 1997, 2015 as one sequence and write it in the margin.

  • Defining a carbon credit as a tax or a fine.

    Students link carbon with pricing and think of penalties.

    Fix: Define it as a tradable certificate for one tonne of CO₂ reduced or removed.

  • Giving India's commitments without any structure or with unverified numbers.

    Students try to recall exact figures.

    Fix: Group them as NDCs, renewable energy push and net zero by 2070. Use exact figures only if sure.

  • Writing only one-line answers in a written paper.

    The topic seems factual, so students skip explanation.

    Fix: Add the purpose, the feature and the business link to earn full marks.

Worked examples

Example 1

Differentiate between the Kyoto Protocol and the Paris Agreement.

Show the solution
  1. Year: Kyoto was adopted in 1997; Paris in 2015.
  2. Coverage: Kyoto set binding emission targets only for developed countries; Paris covers all countries.
  3. Approach: Kyoto used targets fixed through the treaty; Paris uses NDCs that each country sets and updates.
  4. Aim: Kyoto aimed at cutting emissions of developed countries; Paris aims to keep warming well below 2°C and pursue 1.5°C.
  5. Conclusion: Paris shifts from a split between developed and developing countries to shared effort.

Answer: Kyoto (1997) set binding targets for developed countries only, while Paris (2015) asks every country to set its own NDC to keep warming well below 2°C and pursue 1.5°C.

Example 2

Explain carbon credit with an example for a business. A factory is allowed to emit 10,000 tonnes of CO₂ but emits 8,500 tonnes. What can it do?

Show the solution
  1. Define: a carbon credit is a tradable certificate for one tonne of CO₂ reduced or removed.
  2. Compute spare allowance: 10,000 − 8,500 = 1,500 tonnes.
  3. Under a trading system, this saving can be sold as 1,500 credits.
  4. Another firm that exceeds its limit can buy these credits instead of paying more to cut emissions at once.
  5. Result: the saving firm earns income and the buyer gets time; overall emissions are capped.

Answer: The factory has 1,500 tonnes of spare allowance, so it can sell 1,500 carbon credits to a firm that has exceeded its limit.

Exam tips

  • Write year, name and one feature for each agreement; this earns marks even if you forget details.
  • For differentiate questions, draw a two-column layout with at least four points.
  • Add a business link, such as carbon credits or ESG, to lift a short note.
  • Keep India's commitments general unless you are sure of the exact figures.
  • Spend the 15 minutes of reading time marking questions where you can write this timeline confidently.

Practice questions from Environmental Governance

Climate Change and International Environmental Agreements in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Climate Change and International Environmental Agreements: frequently asked questions

What is the main difference between the Kyoto Protocol and the Paris Agreement?

Kyoto set binding emission targets for developed countries only. Paris covers all countries, and each sets its own NDC. Paris also states the goal of keeping warming well below 2°C and pursuing 1.5°C.

What does carbon credit mean for a business student?

A carbon credit is a tradable certificate that represents one tonne of CO₂ reduced or removed. Firms that cut emissions can sell credits, and firms that exceed limits can buy them. It puts a price on pollution.

What is an NDC?

NDC stands for Nationally Determined Contribution. It is the climate plan each country submits under the Paris Agreement, stating how it will reduce emissions and adapt to climate change.

What is India's long-term climate goal?

India has announced a goal of net-zero emissions by 2070. It also submits NDCs under the Paris Agreement and promotes renewable energy. Check your study material for the latest targets.