Global Significance of Decarbonization

The process of decarbonization, involving the reduction of greenhouse gas emissions to attain a carbon-neutral economy, is pivotal in the fight against climate change. Its significance is particularly pronounced at the international level, as it is essential for:

- Paris Agreement Objectives: Decarbonization is essential to achieve the Paris Agreement’s objectives of limiting global warming to well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C.
- Preventing Catastrophic Consequences: Without concerted decarbonization efforts, the world is at facing risk of experiencing catastrophic climate impacts, such as extreme weather events, rising sea levels, and significant ecological disturbances.
- Reducing Fossil Fuel Dependency: Decarbonization helps reduce global reliance on fossil fuels, which are often subject to price volatility and geopolitical tensions.
- Promoting Renewable Energies: By investing in renewable energy sources, countries can diversify their energy mix, create green jobs, and stimulate technological innovation.
- Cleaner Air: Decarbonization, by reducing the combustion of fossil fuels, helps to improve air quality and reduce the prevalence of respiratory and cardiovascular diseases.
- Climate-Resilient Health: By mitigating climate change, decarbonization helps to prevent the spread of climate-sensitive diseases like malaria and dengue.
- Support for exposed Countries: Developing countries and small island nations are often the most vulnerable to the impacts of climate change, despite being the least responsible for historical emissions. Global decarbonization is essential to protect these populations and provide them with the necessary support to adapt.
- Responsibility of Advanced developped Countries: Developed countries, which have historically contributed the most to GHG emissions, have a particular responsibility to lead decarbonization efforts and support those of developing countries.
- Engagement of Developing Countries: Developing countries are often compelled to comply with international requirements aimed at transitioning to a decarbonized economy, such as the Carbon Border Adjustment Mechanism (CBAM), a flagship measure of the European Union (EU) aimed at combating carbon leakage. The term "carbon leakage" refers to greenhouse gas (GHG) emissions generated during the offshored production of certain goods with high GHG emissions, such as cement, steel, aluminum, fertilizers, and electricity. These emissions are then released outside the EU. Thus, the objective of the CBAM is to set a fair price on these emissions to prevent industries from relocating their production to countries with less stringent environmental regulations. In other words, the CBAM aims to maintain a level playing field while reducing global emissions. The implications of the CBAM for developing countries will be detailed below.

Global Significance of Decarbonization

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Global Significance of Decarbonization