The Kyoto Protocol, a pioneering environmental treaty adopted at COP3 in Japan in 1997, is the first time nations have agreed on country-by-country emission reduction targets. The protocol, which only came into force in 2005, set binding emission reduction targets only for industrialized countries, based on the fact that they are responsible for most of the world`s high greenhouse gas emissions. The United States first signed the agreement, but never ratified it; President George W. Bush argued that the agreement would hurt the U.S. economy because developing countries such as China and India would not be included. In the absence of the participation of these three countries, the effectiveness of the treaty was limited, as its objectives covered only a small fraction of total global emissions. A party may also submit a brand new NDC (potentially more ambitious than its current INDC) if it adheres to the agreement. Finally, most countries submitted their nationally defined contributions (INDC) in the run-up to COP21. However, an INDC has no legal status in international law and is only an obligation of goodwill until the country has officially ratified the Paris Agreement. A country`s existing INDC will not become an official NDC until that country becomes a party to the agreement. Institutional asset owners` associations and think-tanks also observed that the stated objectives of the Paris Agreement were implicitly based on the assumption that UN member states, including major polluters such as China, the United States, India, Russia, Japan, Germany, South Korea, Iran, Saudi Arabia, Canada, Indonesia and Mexico , which produce more than half of the world`s greenhouse gas emissions, produce more than half of the world`s greenhouse gas emissions.
, willfully and stubbornly reduce their carbon pollution without a binding mechanism to control CO2 emissions at all levels from one plant to another and without specific penalties or tax pressure (. B, for example, a CO2 tax), to avoid misbehaviour.  However, emissions taxes (for example. B a CO2 tax) can be integrated into the country`s NDCs. The United States and China (the two largest emitters) recently ratified the agreement. With a share of about 40% of global emissions, they can reach the trigger of 55 percent in a number of different scenarios (see the Paris Agreement Interactive Tracker of the World Resource Institute). While mitigation and adjustment require more climate funding, adjustment has generally received less support and has mobilized fewer private sector actions.  A 2014 OECD report showed that in 2014, only 16% of the world`s financial resources were devoted to adaptation to climate change.  The Paris Agreement called for a balance between climate finance between adaptation and mitigation, highlighting in particular the need to strengthen support for adaptation from the parties most affected by climate change, including least developed countries and small island developing states. The agreement also reminds the parties of the importance of public subsidies, as adjustment measures receive less public sector investment.  John Kerry, as Secretary of State, announced that the United States