The letter ends with a call to the United States to return to the agreement: Kisenyi says it will have an impact on different sectors within the economy. One example is American cars, where Biden hopes to increase the share of electric vehicles in passenger sales to 25% by 2026, up from 5% under Trump. The pioneering Paris Agreement, based on the United Nations Framework Convention on Climate Change, was a watershed moment in the global response to the threat of climate change. Its main objective, which is to limit the rise in global temperature, clearly implies the need to redeploy global capital for low-carbon and carbon-neutral investments. The daily evidence of climate change has reinforced the demands for change from regulators and investors. “At the highest level, the major change would be a more coordinated approach by the federal government to climate change, rather than holding individual states accountable on their own levels. Biden also said he was considering re-entering the Paris Climate Agreement; an approach that would probably be welcomed by the world. A new endorsement of the agreement would give the United States a net zero target that would have a significant impact on the decarbonization of the economy. Right now, the United States is one of the only major countries that do not have a net zero target, and the country`s lack of participation in the world`s net zero plans is a real problem. The Trump administration announced in June 2017 that it intended to withdraw from the agreement because the economic cost of the agreement was too high and unfair to the United States. The withdrawal comes into effect today. 189 nations have ratified the agreement and the United States is the only country to have officially withdrawn.
The Paris Agreement is a multi-nation pact drawn up by the parties to the United Nations Framework Convention on Climate Change (UNFCCC) to combat climate change. The main objective of the agreement is to limit the increase in global temperature over this century to less than 2 degrees Celsius above pre-industrial levels and to try to limit the rise to 1.5 degrees. The signatories stress that achieving the objectives of the agreement by limiting the increase in global temperature, contrary to the requirements of the high cost of the agreement, would mitigate the most serious financial and economic consequences of climate change, while improving the ability of institutional investors to achieve sustainable returns for their beneficiaries. The group points out that the Paris agreement enjoys broad support for investors, including 631 investors representing more than $37 trillion in assets signed by the Global Investor Statement to Governments on Climate Change, which calls on all governments to implement the necessary measures and policies to achieve the goals of the agreement.