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Finance has become a crucial agenda in climate change negotiations in recent years. Meanwhile, multilateral negotiations on climate change as a whole are making meager progress, and increasingly observed are activities by national governments and transnational non-state actors. The purpose of this paper is to illustrate how investment towards low-carbon development could be materialized in Asia. A thorough review of current financial assistance for developing countries in Asia was conducted, and the amount of funding proved to be relatively modest to achieve the aim. We then examined financial policy instruments that could be implemented in the region. We estimated that USD125–149 billion per year would be needed to reduce greenhouse gas emissions in the region by 2035. We also estimated that more than a half of this amount of funding could be achieved by public sector if several key policy instruments were agreed upon and enacted at regional and national levels in Asia. The role of private sector investment was also found to be indispensable in fulfilling all the long-term investment needs related to climate mitigation in the region.

Clarifying characteristics of hazards and risks of climate change at 2 °C and 1.5 °C global warming is important for understanding the implications of the Paris Agreement. We perform and analyze large ensembles of 2 °C and 1.5 °C warming simulations. In the 2 °C runs, we find substantial increases in extreme hot days, heavy rainfalls, high streamflow and labor capacity reduction related to heat stress. For example, about half of the world's population is projected to experience a present day 1-in-10 year hot day event every other year at 2 °C warming. The regions with relatively large increases of these four hazard indicators coincide with countries characterized by small CO2 emissions, low-income and high vulnerability. Limiting global warming to 1.5 °C, compared to 2 °C, is projected to lower increases in the four hazard indicators especially in those regions., Environmental Research Letters, 14 (12), ISSN:1748-9326, ISSN:1748-9318

Under the Paris Agreement, parties set and implement their own emissions targets as nationally determined contributions (NDCs) to tackle climate change. International carbon emissions trading is expected to reduce global mitigation costs. Here, we show the benefit of emissions trading under both NDCs and a more ambitious reduction scenario consistent with the 2 °C goal. The results show that the global welfare loss, which was measured based on estimated household consumption change in 2030, decreased by 75% (from 0.47% to 0.16%), as a consequence of achieving NDCs through emissions trading. Furthermore, achieving the 2 °C targets without emissions trading led to a global welfare loss of 1.4%–3.4%, depending on the burden-sharing scheme used, whereas emissions trading reduced the loss to around 1.5% (from 1.4% to 1.7%). These results indicate that emissions trading is a valuable option for the international system, enabling NDCs and more ambitious targets to be achieved in a cost-effective manner.