Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

World welcomes U.S. return to Paris climate accord, readies wish-list for Biden

Published 01/21/2021, 12:16 AM
Updated 01/21/2021, 12:20 AM
© Reuters. Inauguration of Joe Biden as the 46th President of the United States

By Kate Abnett

BRUSSELS (Reuters) - Climate-change leaders and campaigners worldwide welcomed U.S. President Joe Biden's move to rejoin the 2015 Paris Agreement but said Washington must also cut emissions and use its influence to encourage other countries to do the same.

In one of his first acts as president, Biden issued an executive order on Wednesday to bring the United States, the world's second-largest greenhouse gas emitter, back into the global treaty committing nearly 200 countries to halt rising temperatures quickly enough to avoid disastrous climate change.

Washington formally left the Paris accord last year but its role as a heavyweight in global climate negotiations had already stalled with the 2016 election of President Donald Trump.

Trump cast doubt on climate science and asserted that the accord was an economic burden. U.N. climate negotiations have stuttered since then, with multiple summits failing to deliver ambitious action.

"I wouldn't be surprised if they get a standing ovation just by entering the room," former U.N. climate chief Christiana Figueres said, referring to a U.S. return to global climate talks. "That doesn't mean that they will have a standing ovation forever. They have to prove that they are really determined to make the changes that are necessary."

U.N. Secretary General Antonio Guterres welcomed the U.S. return to the Paris accord but added: "There is a very long way to go. The climate crisis continues to worsen and time is running out to limit temperature rise to 1.5 degrees Celsius and build more climate-resilient societies that help to protect the most vulnerable."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Climate diplomats said they want to see an ambitious U.S. commitment to cut emissions this decade and a diplomatic push to convince others to follow suit. Top of the list would be China, the world's biggest polluter, which plans to become carbon neutral by 2060 but has yet to unveil a short-term plan to reduce emissions.

Climate agreements signed by China and the United States played a big role in securing a deal at the Paris climate talks in 2015.

But during the Trump administration, climate became another source of friction between the world's two biggest economies, and experts said it was unlikely that their relationship could immediately return to normal.

"A lot has changed since the Obama years that will make the G2 climate relationship under Biden unpredictable," said Li Shuo, senior climate and energy policy officer for Greenpeace East Asia, referring to the United States and China as the G2.

Li pointed to the rock-bottom U.S.-China relationship and divisive politics that create challenges for climate engagement.

"What remains unchanged is the need for the G2 to move towards the same direction ... Now the task is for the pair to switch to high gear, holding each other’s hand or not," Li said.

CARBON BORDER TAX?

Biden has said he wants to put the United States on track to net zero emissions by 2050 but has yet to detail what regulatory tools he intends to use to achieve that goal.

"One of the core challenges for the administration is going to be reframing this as opportunity for green growth, for jobs - for the kind of things we've seen in Europe, which has managed to significantly grow its economy while reducing its carbon emissions," said Kelley Kizzier, a former European Union climate negotiator, now at the non-profit Environmental Defense Fund.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The EU is already eyeing areas for collaboration.

In June, it will propose a carbon levy on imports of certain polluting goods to protect European industry from cheaper competitors in countries with weak climate policies. Biden pledged in his election campaign to do the same, through "carbon adjustment fees or quotas" at the U.S. border.

Carbon border policies offer "an opportunity to work together to set a global template for such measures," the EU said in a December memo on its priorities for the new EU relationship with the Biden administration.

Policy analysts say a joint U.S.-EU carbon border measure could drive faster decarbonisation in countries with high-emitting export-oriented sectors - including China, the world's largest steel producer.

"This is a very important tool in the hands of the EU and the U.S. administration to stimulate global climate action," said Simone Tagliapietra, research fellow at Brussels-based think tank Bruegel.

Frans Timmermans, the EU climate policy chief, said he would team up with John Kerry, Biden's international climate envoy, "to convince ever more countries that ambitious climate action is in their best interest."

But for vulnerable countries grappling with floods, heat waves and droughts made more devastating by climate change, the priority is finance.

Former President Barack Obama's administration pledged to deliver $3 billion to the U.N. flagship fund to help vulnerable countries fight climate change. Washington has delivered only $1 billion so far.

"President Biden should fulfil the remaining pledge," said Tanguy Gahouma-Bekale, chair of the African Group of Negotiators in global climate talks.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

global warming? lol record breaking freeze northern hemisphere now...total scam
you must be that senator who took some snow into the senate chamber as evidence of no climate change, brilliant logic
If you think this I about the weather you are a f0ol. This is 100% about transferring wealth from the US to the rest of the world and I guarantee non of the other countries will reach the designated climate "goals". They never have and they never will.
interesting, tell us, how exact does the climate accord make US transfer wealth to other countries?  and how much $ are we talking about?
, US tax dollars going to other nations to help reduce green house gases. Get a clue.
"Former President Barack Obama's administration pledged to deliver $3 billion to the U.N. flagship fund to help vulnerable countries fight climate change. Washington has delivered only $1 billion so far."  -- so at most that's $2b over the Biden administration, that's the level of "wealth transfer" we are talking about
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.