Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

The Paris Agreement is significant primarily because it sets legally binding limits on carbon emissions, which is crucial in the global effort to combat climate change. By establishing frameworks for countries to commit to reducing their greenhouse gas emissions, the Agreement encourages accountability and transparency, as nations outline their emission reduction targets through Nationally Determined Contributions (NDCs).

This binding nature is essential as it drives countries to not only set ambitious goals but also to take concrete actions towards achieving them. The ultimate aim of the Paris Agreement is to limit global temperature increase to well below 2 degrees Celsius above pre-industrial levels, thereby mitigating the potential disastrous impacts of climate change on ecosystems, economies, and communities worldwide.

While the other options touch on important topics related to sustainability and environmental management, they do not capture the core purpose of the Paris Agreement in terms of its global impact on climate action and legally binding commitments from countries to reduce emissions.