The Kyoto Protocol introduced financial mechanisms primarily managed by the Global Environment Facility, focusing on supporting developing countries in their mitigation efforts and adaptation needs. However, the financial provisions were often considered inadequate and inefficient.

In contrast, the Paris Agreement established a more comprehensive financial framework. It upheld the principle of mobilising $100 billion annually by 2020 from various sources to support developing countries. The agreement emphasises the role of developed nations in mobilising climate finance and encourages voluntary contributions from other nations. It also aims to enhance the predictability and transparency of financial flows, ensuring that developing nations have the necessary support to implement their NDCs and enhance their climate resilience.

The United States' withdrawal from the Paris Agreement in 2017 was met with widespread disappointment but also galvanised reaffirmation of the agreement by other countries and subnational entities. International leaders, including those from major economies like the European Union and China, reiterated their unwavering commitment to the Paris goals.

Within the U.S., states, cities, businesses, and civil society mobilised to uphold the nation’s climate commitments through initiatives like the “We Are Still In” declaration. This collective response underscored the Paris Agreement’s resilience and the global consensus on the urgency of climate action. It highlighted the multifaceted nature of climate governance, involving not just national governments, but a diverse array of actors committed to advancing climate resilience and low-carbon development.

The Kyoto Protocol initiated the principle of “common but differentiated responsibilities,” acknowledging the varied contributions and capacities of countries in addressing climate change. However, its focus on legally binding targets for developed countries only was a point of contention, leading to debates on equity and justice.

The Paris Agreement expanded on this principle, offering a more nuanced approach. It recognises the need for all countries to contribute to climate action while considering their national contexts, capacities, and development levels. The agreement’s flexibility, allowing countries to set their own non-binding NDCs, embodies an effort to balance ambition with equity. It seeks to ensure that climate actions are just and equitable, fostering global solidarity while respecting national circumstances and capacities, thereby integrating the principles of climate justice into the core of international climate governance.

The Paris Agreement incorporates a robust transparency framework to track and report countries' progress in implementing their Nationally Determined Contributions (NDCs). This mechanism ensures that nations are accountable for their commitments and contributes to building mutual trust. Countries are required to regularly provide information on their greenhouse gas emissions and implementation efforts.

An expert review process assesses the information, offering technical recommendations to enhance implementation. The global stocktake, occurring every five years, evaluates collective progress towards the agreement’s goals, informing the enhancement of NDCs. This iterative process of reporting, review, and enhancement aims to ratchet up ambition and actions over time, ensuring that the agreement remains dynamic and responsive to emerging challenges and opportunities.

The Kyoto Protocol and Paris Agreement have acted as catalysts for national climate policies. The Kyoto Protocol, with its legally binding targets for developed countries, prompted the integration of climate considerations into national policies and regulatory frameworks. It spurred innovations in carbon trading and introduced mechanisms like the Clean Development Mechanism (CDM) and Joint Implementation (JI), encouraging emission reduction initiatives.

On the other hand, the Paris Agreement’s inclusive approach, involving both developed and developing countries, has fostered a global momentum. Its emphasis on Nationally Determined Contributions (NDCs) has encouraged countries to assess their climate impacts, vulnerabilities, and capacities, leading to the formulation of tailored climate actions and policies. The agreement’s universal participation and flexible commitments have facilitated broader engagement and collaboration, driving national initiatives to reduce emissions, enhance resilience, and transition towards low-carbon development.