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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives

Sagar Chemicals Ltd's board is discussing India's obligations under the Paris Agreement. A director says each country must submit binding emission cuts fixed by the UNFCCC secretariat. The company secretary correctly responds that under the Paris Agreement, countries:

Under the Paris Agreement, each country prepares and submits its own nationally determined contributions and updates them periodically, showing progression in ambition. The targets are not imposed by the UNFCCC secretariat as quotas, which distinguishes the bottom-up Paris approach from the top-down Kyoto Protocol model.

  1. ASubmit nationally determined contributions of their own design, to be updated periodically with progressively greater ambitionCorrect
  2. BAccept emission quotas allotted only to developed countries, with developing countries exempt from all reporting
  3. CMust buy carbon credits from the secretariat to cover any excess emissions
  4. DAre bound to phase out all fossil fuel use within a fixed common date

Explanation

The Paris Agreement works through nationally determined contributions (NDCs) set by each party and updated about every five years with progression. It is not a top-down quota system like Kyoto's targets for developed countries. Options on exemption, secretariat credit purchase and a common phase-out date do not describe the treaty.

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