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On December 12^th, 2015, at the United Nations Conference on Climate Change held in Paris, 195 countries adopted the first-ever universal and legally binding climate deal. They agreed to decarbonize the economy in order to hold the increase in the global average temperature to well below 2C relative to the preindustrial levels. Although each country is free to design its own strategy on mitigation and adaptation, it will be bound to such strategy and is supposed to implement the bulk of the adjustments by 2050.

Many questions arise from the Paris Agreement that...