One of the new Agreement's core ingredients is known as the ambition mechanism, or cycles of action. This mechanism lays out a process to continue strengthening countries' climate action every five years, starting before 2020.
If successful, the new international climate agreement forged in Paris will send strong signals to financial markets—and therefore to businesses and investors—about the direction of energy for the foreseeable future.
As negotiators leave Bonn, Germany after two weeks of talks on the international climate agreement that will be concluded in Paris at the COP 21 summit later this year, one thing is clear: The pace of negotiations must speed up considerably.
Country climate commitments and pledges agreed at Paris may not keep warming below 2 degrees C (3.6 degrees F) by themselves, but by establishing a systematic mechanism to ramp up efforts over time, countries can take collective action to avoid dangerous global warming.