The FINANCIAL -- On November 4 the Paris Agreement enters into force marking a watershed moment that solidifies international cooperation for climate action and sends a powerful market signal to business that rapid transformation is needed to climate-proof the global economy.
The landmark agreement – through the Global Climate Action Agenda – recognizes for the first time the role of non-state actors to deliver ambitious climate action and to make progress over time. Over 11,000 commitments have been made to date by business, investors, civil society, and cities and regions from 180 countries. Ninety four countries have ratified the Paris Agreement, representing 66 percent of all global greenhouse gas emissions surpassing the 55 percent threshold required for the agreement to enter into effect, according to the UN Global Compact.
“The rapid pace of the Paris Agreement’s entry into force exemplifies the ambition and collective commitment from all sectors of society to protect our planet for future generations,” said Lise Kingo, Executive Director of the United Nations Global Compact. “We congratulate Heads of States and Governments for their unwavering commitment to climate action, UN Secretary-General Ban Ki-moon for his leadership and all business and civil society leaders that have joined together to make the Paris Agreement a reality.”
Over the past decade, the UN Global Compact has mobilized businesses to take a leadership stance on climate change. Since 2007, the Caring for Climate initiative, led by the UN Global Compact in partnership with UNEP and UNFCCC, has brought more than 450 companies together to advance the power of sustainable business. It is the largest coalition of businesses that are taking action on climate.
Earlier this year, the UN Global Compact called on companies to set an internal price on carbon at a minimum of $100 per metric ton over time as a means to spur innovation, unlock investment and shift market signals. The Business Leadership Criteria on Carbon Pricing provides guidance for companies to take on the triple challenge of setting, advocating for and reporting on an ambitious price on carbon. So far, 70 companies with a total market capitalization of over USD 2.0 trillion across 20 sectors have committed to integrate carbon pricing into corporate long-term strategies and investment decisions.
On 16 November, the UN Global Compact together with UNEP and UNFCCC will host the High-Level Meeting on Climate Change at COP 22 in Marrakech. As the first UN Climate Change Conference with an agreement, the meeting will feature interactive discussions among top executives on how business can help accelerate climate action at the country-level and create transformative pathways to reach the well below 2°C trajectory.