The deal has all countries agreeing to work towards a legally binding emissions reduction scheme by 2015, to be implemented by 2020. It was forged in the last hours of the Conference of the Parties (COP), and rides on the back of last-minute fears of a complete breakdown of the talks.
A compromise agreement also saved the Kyoto Protocol — the only legally binding arrangement applying to developed countries — with Europe and a few others signalling a commitment to a second round of pledges after 2012.
Progress was also made on the “Cancún decisions": the green climate fund was set up along with initial pledges; a committee was set up to help vulnerable countries adapt to climate change; and the terms of reference were set for a technology centre and network, which will help transfer technology to developing countries.
On the face of it these decisions are a major feat, given the stalemate between countries in the last days of the Durban conference.
KPMG climate change & sustainability director Neil Morris says though the details of the text need to be analysed for businesses to understand the short-term consequences, the long-term message is certainty that the green growth path is the one to follow.
Business also now has certainty that the market mechanisms of the Kyoto Protocol will still apply, such as the clean development mechanism which allows emission reduction projects in developing countries to be funded by the earning and selling of carbon credits. Read the full report here.
Source: Lise Pretorius, Fm.co.za.
