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Paris Agreement

Trading Term

The Paris Agreement is the 2015 treaty under the United Nations Framework Convention on Climate Change in which signatories agreed to hold the long-term rise in global surface temperature well below 2°C above pre-industrial levels, with a stated preference for 1.5°C. It operates through voluntary national pledges with no binding penalty for missing them, and progress is reviewed at the annual Conference of the Parties. The 1.5°C and 2°C figures emerged from diplomatic negotiation rather than from a single authoritative scientific determination, and because the targets are framed around multi-decadal averages, a single year crossing a threshold does not by itself constitute a breach of the agreement.

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