An Overview On The Paris Agreement Of 2015 And The Global Green New Deal To Provide A Sustainable Future.

This work has been supported by arguments made by Pollin (2021), Wolfgang Streeck (2014) and Xiaochuan (2009), followed by a proposed plan to achieve a sustainable future.

The 2015 Paris Agreement was a revolutionary framework for tackling climate change while keeping a close eye on its economic ramifications which marks a turning point in the field of international economics. Given the possible economic consequences linked with climate change, economists and politicians around the world realised how urgently we needed to shift towards a sustainable, low-carbon future. 194 nations came together to negotiate the agreement under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC), with the aim of jointly addressing the economic obstacles that arise from environmental degradation.

Fundamentally, the Paris Agreement on Climate Change, the United Nations is pursuing efforts to limit global warming to 1.5°C, whereas earlier aspirations focused on a 2°C limit (Warren et al., 2018). The Paris Agreement is an application of environmental economics, which seeks to synchronise economic activity with ecological sustainability. The accord highlights the financial consequences of doing nothing to combat climate change, stressing the possible harm to agriculture, infrastructure, and overall economic output. Understanding how intertwined the world's economies are, it sets aggressive goals to curb rising temperatures, indicating a move towards more climate-resilient economic systems.

The idea of nationally determined contributions (NDCs) embodies the economic foundations of the Paris Agreement. Outlining their specific pledges to reduce greenhouse gas emissions and prepare for the effects of climate change, each participating nation makes these clear. A country's readiness to invest in sustainable practices, renewable energy, and cleaner technology is reflected in these commitments, which are effectively financial pledges. By recognising the various economic capacities and development phases of participating countries, the NDCs provide as an economic roadmap that assists countries in their transition towards greener economies.

Moreover, the Paris Agreement facilitates the growth of an international green economy. It promotes economic growth in industries that are in line with environmental sustainability by offering incentives for investments in clean technologies and renewable energy sources. Additionally, the agreement's economic tools promote transparency and comparability, as well as its cost-benefit test, have been subjects of analysis, highlighting the economic and policy implications of the agreement (Aldy et al., 2016). States are positioned at the vanguard of a new economic paradigm by the agreement, which acknowledges the economic potential of the renewable energy industries and the development of green jobs.

Overall, the 2015 Paris Agreement signifies a turning point in the field of international economics as it recognises the mutual economic reliance of states and emphasises the necessity of tackling climate change to ensure sustainable economic growth. As a proactive reaction to the economic difficulties faced by climate change, it lays the groundwork for a global economic revolution towards environmentally responsible activities. With all these things in mind we still know that the Paris agreement has not stood by its goals as the national commitments were too small. In coordination to this agreement Pollin came up with a term called the global green new deal.

According to Pollin's work from 2021, the idea of a worldwide Green New Deal (GND) is put up as an extensive and audacious plan meant to solve the pressing environmental sustainability issue as well as the economic difficulties. The concept emphasises the necessity of managing climate change on a worldwide scale while taking influence from past programmes like Franklin D. Roosevelt's New Deal in the United States. The global Green New Deal (GND) is basically an economic policy strategy aimed at ensuring a more economically and environmentally sustainable world economic recovery (Barbier, 2010)

The global GND is presented as a solution to the twin problems of economic inequality and climate change. It contends that by treating one, the other can be resolved because these problems are interrelated. In Pollin's vision of the GND, substantial government intervention in the economy is promoted, embracing Keynesian concepts. This involves significant public funding allocated to sustainable technologies, renewable energy sources, and green infrastructure initiatives. The goal is to boost economic activity, generate jobs, and propel general economic growth by using government spending as a catalyst. He talks about the government lead investments in green infrastructure, job creation and economic stimulus. The GND places a strong emphasis on large-scale government-led investments in environmentally friendly and sustainable infrastructure. Projects pertaining to energy efficiency, renewable energy, public transit, and other ecologically friendly industries fall under this category. He also highlights how the GND has the ability to create jobs on an international level. The initiative seeks to directly create jobs by funding green enterprises and technologies, hence stimulating the economy. GND is based on Expenditure multipliers are a fundamental Keynesian notion. Economic activity is anticipated to rise as a result of first government spending on green projects. Demand and economic growth are likely to be further stimulated by consumers spending more as employment and income levels rise.

An additional indication of the GND's Keynesian nature is the belief that green expenditures will boost economic activity and lead to higher tax receipts. It is thus anticipated that this will help the GND become self-financing by offsetting its original expenses. However, the Keynesians say that this would not work with the middle-income countries as the government expenditure programme to facilitate energy towards green transport this will increase tax revenue need to pay for GND outlays. Though government expenditure and job creation are the main ways that the GND is portrayed as a demand-side strategy, it also has ramifications for the supply side of the economy. The emphasis on sustainable technology and green infrastructure can stimulate innovation, increase output, and aid in the emergence of new markets. By encouraging long-term structural changes in the economy, the GND may therefore have a favourable impact on the supply side. Moreover, the global Green New Deal project outlined here will not replace capitalism with socialism (Lee & Park, 2021). In fact, this variant of a global green new deal project will actually need to take root and flourish within the interstices of capitalism (Pollin, 2021).

Hence other economist like Wolfgang Streek worry that global green new deal might not pay for itself through the multiplier effect and will thus have to be debt financed. Wolfgang Streeck's doubts about the multiplier effects' ability to completely offset the costs of the global Green New Deal (GND) are the basis of his concern that the GND may not 'pay for itself' through multiplier effects and may instead need debt financing. Since Streeck's viewpoint is frequently linked to a negative position on the efficacy of Keynesian economic policies, his worries over the GND's self-financing character are relevant here. Streeck expresses doubt on the multiplier effects' presumed effectiveness in relation to the GND. According to the Keynesian notion of the multiplier effect, a first government expenditure injection into the economy will cause a domino effect of increased spending, income, and employment. The

possibility that the GND projects' multiplier effects—such as green investments—may not be strong enough to produce enough economic activity to offset the initiative's expenses seems to be plausibly dismissed by Streeck. The apparent limits of depending only on multiplier effects are the source of Streeck's concern that the GND would require debt funding. There might be a finance gap if the GND-induced economic activity does not produce enough tax income to meet government expenses. Debt finance might be used as a backup plan to pay for the GND projects in such a case. The variations in economic conditions around the world may also be taken into consideration by Streeck. The GND may not be able to benefit all nations equally, which could result in differences in how long it takes for the GND to "pay for itself" in various economic environments (Streek, 2014).

Therefore, for high investments, the initial costs are very high. So, the multiplier effect will take longer time, years to show profits on investment. Environmentalist think this is a lot of risk, i.e., ‘energy returned on energy invested’ is very low. This shows ‘degrowth’( pollin, 2019). Degrowth is an economic theory that questions the conventional focus on continuous economic growth, arguing that unchecked growth can result in resource depletion, environmental damage, and social inequality. The degrowth argument has become more popular in conversations about sustainable development, but when middle-income nations are taken into account, it has particular consequences. The search for of development strategies that maintain a balance between social and environmental sustainability and economic growth is a common problem for middle-income nations. In order to improve well-being, lessen inequality, and minimise negative effects on the environment, degrowth advocates for a purposeful reduction in overall economic production. Here, in middle income countries, they already have less government expenditure limit resulting in the country to borrow a lot of money which would keep them in debt for a longer period of time as the profits of the multiplier effect on their economy will show profits after a very long period of time. On this, during the height of the global financial crisis, on March 23, 2009, Zhou Xiaochuan, the former Governor of the People's Bank of China, made a case for the reform of the international monetary system and a possible return to the principles outlined in Keynes' bancor plan.

Zhou Xiaochuan argues that in order to create a truly global Green New Deal (GND), the world should go back to the ideas outlined in Keynes' bancor plan. This is because his argument has the potential to address fundamental financial and economic issues that could otherwise prevent a GND from being implemented successfully on a global scale. Xiaochuan stresses that the current international monetary system must be replaced and suggests reform of it. A supranational currency, or bancor, was suggested by Keynes' bancor proposal as a way to ease international trade and lessen currency-related imbalances. In order to provide a stable financial base for the global adoption of a GND, reforming the international monetary system is essential. A restriction on lower-income nations' repayment of their sovereign debt is one of Xiaochuan's suggestions. This is especially important in the context of the GND, since many lower-income nations may find it difficult to pay off their current debt, which limits their ability to fund climate change-related projects. These nations may be able to actively participate in international efforts to mitigate climate change if a moratorium is implemented, giving them the financial breathing room, they require. The need for further global economic cooperation is emphasised by Xiaochuan's perspective. An international monetary system that is stable and has undergone reform can help countries work together more easily. This includes sharing resources, coordinating efforts, and putting collective solutions—like a global GND—into action. Ensuring that all countries, particularly those with lower incomes, can partake in and profit from the shift to a green economy is crucial for constructing a genuinely global green economy(Xiaochuan, 2009). By addressing concerns about differences in national financial resources and capacities, Xiaochuan's recommendations, if put into practice, might help create

a more inclusive and equitable global economic system. As a whole, Xiaochuan's case for going back to Keynes' bancor plan is crucial to the success of a global Green New Deal because it tackles structural problems with the international financial architecture, offers funding for climate change projects in low-income nations, and promotes the kind of international economic cooperation that is needed to make the transition to a sustainable and green global economy easy.

Keeping in mind all the arguments made by Robert Pollin, Wolfgang Streek, and Xiaochuan we have come up with a new implementation plan for global green new deal to develop. Firstly, there should be an international monetary system reform. There should be reform advocacy i.e. taking part in diplomatic initiatives to promote meaningful changes to the global monetary system. In order to gain support for reorganising the global financial infrastructure, this may entail talks at international bodies like the G20 and UN.

Then there should be moratorium on sovereign debt i.e. taking the position that lower-income nations should not be required to repay their sovereign debts, acknowledging that doing so can free up funds for investments in climate change. This could entail talks with creditor countries and international financial institutions.

Also, creation of worldwide fund i.e. suggesting the creation of a worldwide fund devoted only to investments in climate change. Economically developed countries and multilateral organisations could contribute to this fund, guaranteeing fair distribution and accessible for all states.

Secondly, we follow global collaboration. This includes knowledge sharing i.e. promoting the exchange of best practices and information about green technologies, sustainable development, and climate change mitigation in order to foster worldwide cooperation. Provide a forum where nations can share their experiences and insights gained. Support methods for the transmission of environmentally friendly technologies from developed to developing countries are known as technology transfer. This could entail partnerships, cooperative research initiatives, and contracts to promote the dissemination of eco-friendly inventions.

Then, Pooling of Financial Resources i.e. promoting the pooling of national finances for joint projects. Creating collaborations and pooling resources to tackle common environmental issues are a couple of examples of this. Thirdly, governments should have investments. The development of strategic plans for green investments by governments is recommended. These strategies should prioritise areas such as clean transportation, sustainable agriculture, energy efficiency, and renewable energy. Provide funds and resources to help with these projects.

We should also have a framework of policies which establishes laws, incentives, and subsidies that encourage environmentally friendly behaviour and prohibit activities that harm the environment. These are examples of supportive policy frameworks. Gives the public and private sectors explicit parameters so they can align with sustainable aims.

Fourthly, there should be a partnership between the private and the public sector. We should create incentive systems to promote private sector participation in environmentally friendly initiatives. In order to encourage enterprises to make green investments, this could entail tax cuts, subsidies, or regulatory measures. Encourage cooperation on certain projects between corporations and government agencies. Forming public-private partnerships can be advantageous for projects that require the skills of both the public and private sectors, such as large-scale renewable energy installations and sustainable infrastructure development. Fifthly, there should be constant monitoring and evaluation. We should establish metrics to evaluate the effects of GND activities, establish quantifiable, transparent measures. Environmental indicators may improve, employment creation, a rise in the usage of renewable energy sources, and a decrease in carbon emissions are some examples of metrics.

We should also have constant audits to determine what needs to be improved and to gauge the success of GND projects, conduct routine audits and assessments. Resource allocation and strategy optimisation can be achieved by utilising data-driven insights. Accountability and Transparency Hold organisations and governments responsible for their promises and encourage reporting that is transparent. To keep the public's confidence and support, inform them on a regular basis on the progress being made.

By putting these components together, the plan hopes to remove financial obstacles, advance inclusiveness in the global economy, foster cooperation, and establish a foundation for long- term advancement in both the environment and the economy. It acknowledges that realising the objectives of a Global Green New Deal will require a coordinated, inclusive, and flexible strategy.

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