As we mark a decade since the adoption of the Paris Agreement, our global climate commitment is under scrutiny. Although renewable energy capacity has doubled and more than 142 countries have adopted net-zero targets, global emissions continue to rise (despite pledges), with the 1.5°C threshold nearly breached. Clearly, the Paris Agreement needs rekindling – but what could this renewal entail? Alex McNamara, Head of Environment: National Business Initiative (NBI), explains.
With 2025 marking the 10th anniversary of the Paris Agreement, we’re well placed to assess how effective the climate accord has been. What has been achieved so far, and are there specific countries or sectors where climate action has exceeded expectations?
You cannot underestimate the significance of the Paris Agreement; it ushered in the first-ever unified climate agreement with mitigation actions and targets for all countries. It has some benefits that the Kyoto Protocol did not have: it’s a permanent agreement with no fixed timeframe, it’s universal and it has a ‘ratcheting’ mechanism that allows countries to increase their mitigation ambitions over time. Without the Paris Agreement, we would be facing a rise of 5°C in global temperatures, but we are currently projected to be on course for about 2.7–3°C. We are not yet where we need to be, but this represents progress and the Agreement set an aspirational goal of 1.5°C, which is significant.
The Agreement has also helped to accelerate the energy transition. Globally, solar photovoltaic (PV) capacity has doubled roughly every three years since 2016, making it one of the fastest-scaling technologies in history. In 2024 alone, the world added about 700 gigawatts (GW) of new renewable energy capacity. To put that into perspective, that’s more than 10 times the size of South Africa’s entire electricity system. Additionally, the cost of renewables has drastically decreased over the past decade, making them the default least-cost source of new power generation globally.
Climate finance was a core promise of the Paris Agreement – US$100 billion annually for developing nations. Has this commitment been honoured, and what impact has the funding gap had on climate efforts, particularly in developing countries?
Climate finance was a central promise of the Paris Agreement, with developed countries committing to mobilise US$100 billion annually for developing nations by 2020. This target was only reached in 2022, with US$89.6 billion provided in 2021. The funding gap has particularly affected adaptation efforts, which remain underfunded compared to mitigation efforts. On a more positive note, at COP29 in Baku in 2024, countries agreed to triple climate finance to US$300 billion annually by 2035. While this still falls short of the quantum needed, it is an important step forward, and the intention is to leverage this financing goal substantially through collaboration with the private sector.
How effectively are National Adaptation Plans being implemented? What structural barriers prevent adaptation finance from reaching frontline communities, and what innovative approaches are emerging to bridge this gap?
National Adaptation Plans are often difficult to implement in the most vulnerable regions, such as small island developing states, which have argued that every degree of warming is a cost they cannot afford to bear, and that repeated climate disasters are effectively fiscal catastrophes for their economies. In addition, many of the most vulnerable countries, including fragile states, have low institutional capacity, face conflict and thus lack the resources and expertise needed for effective adaptation.
Accessing adaptation finance is also a lengthy and complex process, which makes it harder for the most vulnerable to benefit. Innovative approaches like Namibia’s Enhanced Direct Access model, which channels funding directly to local organisations, should be reviewed and tracked carefully, as they help empower communities and improve the relevance and impact of adaptation projects.
What meaningful roles can companies and nonprofit organisations play in advancing climate goals, even when national policies may be falling short?
Companies should set ambitious, science-based targets and ensure they are well governed regarding climate change, with a strong focus on integrating these goals into company strategy and decision-making. They also need to improve their own operations by increasing energy efficiency, procuring renewable energy and engaging with suppliers to drive climate action throughout the value chain. Over 100 companies with operations in South Africa have already set a goal to use 100% renewable electricity by 2050. Many are also collaborating with suppliers to extend climate commitments beyond their own operations. It is also critical for companies to learn from their peers and adopt global best practices, which is a key role the NBI plays in supporting its members in South Africa.
Nonprofits also play an important role by acting as a bridge between government and business, and through their credible, independent research, which can help to outline what is technologically and financially feasible for decarbonising the economy, while providing significant support for implementation efforts.
Finally, the financial sector has a vital role to play, focusing on accelerating the deployment of low-carbon infrastructure and developing climate-friendly investment portfolios.
ALEX MCNAMARA | Head of Environment: National Business Initiative | AlexM@nbi.org.za
