As the climate crisis deepens, the need for global action becomes greater than ever. Central to this effort is the goal of achieving net zero emissions by 2050, to meet the Paris Agreement to limit global warming.
So far 145 countries, collectively responsible for 90% of emissions, have committed to net zero targets or are actively considering them. But what if countries withdraw from their commitments, as US President-elect Donald Trump appears intent to do?
Our new research examined how net-zero announcements from the United States, United Kingdom and China affected global financial markets. We studied how traders in global markets reacted to these announcements. We found markets responded positively in each case through both a change in the volume of trade and variations in prices.
