The Paris Agreement has fundamentally reshaped global climate governance by replacing the Kyoto Protocol’s top down system of binding targets with a universal framework built on nationally determined contributions (NDCs) and regular cycles of increasing ambition. According to an expert survey conducted by the OECD, in the absence of the Paris Agreement, climate change mitigation would likely be a lower policy priority, mitigation policies would be less developed, and international co-ordination on climate action would be less ambitious and less effective.
Transformational change for net zero
Governments across the globe are making efforts to limit greenhouse gas emissions, but climate action is not ambitious enough. To achieve net zero goals and limit global warming to well-below 2°C, as envisioned in the Paris Agreement, systemic transformations are needed. The OECD helps governments achieve the transformative change required to reach international climate goals and improve well-being.
Key messages
Triggering positive tipping points - where crossing a critical threshold leads to a self-propelling shift to a new system state - may play a crucial role in rapidly accelerating emissions reductions. For instance, breakthroughs in renewable energy and battery technologies show how reinforcing positive changes can drive exponential cost reductions and technology uptake. Leveraging these dynamics through policy can lead to cascading effects across systems but managing unintended consequences is crucial.
Context
The energy sector has a strong transformative potential to reduce greenhouse gas emissions
A survey of more than 250 policymakers and climate experts across over 60 countries revealed that accelerating the transition towards cleaner energy, for instance through expanding renewable energy generation, phasing out fossil fuels in power production and enhancing energy efficiency, is perceived as the most transformative driver of CO₂ emissions reductions.
Reallocating road space can help to transform transport systems
Transforming our transport systems - so that walking, cycling, and public transport become the most attractive options - requires reshaping the structure of the system itself. By reallocating road space toward these sustainable modes, we make them safer, more convenient, and more appealing to use. This shift encourages greater uptake of low carbon mobility and contributes directly to reducing emissions.
Recent progress in renewable energy shows the potential of positive tipping points
Many of the technologies needed to accelerate greenhouse gas emissions reductions already exist and are being rapidly deployed, driven by unprecedented cost declines over the past decade. The levelised cost of electricity (LCOE) from solar and wind is already lower than that of coal and gas in multiple markets. Global deployment of many clean energy technologies accelerated quickly between 2015 and 2022, with solar photovoltaic (PV) capacity and stationary battery storage increasing by more than 400% and 2,500% respectively. Sales of electric vehicles grew by nearly 2,000% during the same period, and sales of residential heat pumps rose by 225%.
Figure 1. A) Levelised cost of electricity (LCOE) for solar PV vs coal and gas, and B) share of solar PV in total electricity generation in selected countries
Related policy issues
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Despite considerable progress, we need bolder action and deeper global co-operation to achieve net-zero emissions and limit climate change, which interconnects with biodiversity loss and pollution to form a triple planetary crisis. Addressing policy gaps and taking a systems-wide approach can also help countries to seize the economic opportunities offered by the net-zero transition. The OECD works to support governments and international bodies, including by providing rigorous data, analysis and policy recommendations, to raise ambition and improve outcomes on climate mitigation, adaptation, resilience and financing.Learn more
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Analysis and insights for driving a rapid transition to net zero while building resilience to physical climate impacts.Learn more