Sustainability and Climate Risk (SCR) — Question 60

An industry association in Germany surveys members on business alignment with nationally determined contributions (NDCs). The association members express concern about potential cascading legal repercussions or penalties if governments do not conform to Paris Agreement pledges. An attorney at the association researches this issue and sends a memo to members.
The memo should state the Paris Agreement legally obliges signatories to take what action?

Answer options

• A. Provide financing to help developing countries achieve NDC goals.
• B. Report on NDC progress every 5 years.
• C. Penalize industries exceeding NDC emissions thresholds.
• D. Revise NDC targets annually.

Correct answer: B

Explanation

The correct answer is B because the Paris Agreement requires signatories to report on their NDC progress every five years to ensure accountability and transparency. Options A, C, and D, while related to climate action, do not reflect the specific legal obligations outlined in the Agreement regarding reporting timelines.