The agreement recognizes the role of non-partisan stakeholders in the fight against climate change, including cities, other sub-national authorities, civil society, the private sector and others. For example, there is a concession contract between the French and British governments and two private companies via the Channel Tunnel. British Channel Tunnel Group Limited and France-Manche S.A. operate the Channel Tunnel, often referred to as „Chunnel“ as part of the agreement. The tunnel connects the two countries and allows the transport of people and goods between them. It is 50 km long and is 38 km under the English Channel. The Channel Tunnel is therefore the longest underwater tunnel in the world and an important part of the public infrastructure. The terms of a concession contract depend largely on his desire. For example, a contract to operate a food concession in a popular stadium cannot offer much to the dealer in the kind of incentives. On the other hand, a government that wants to attract mining companies to an impoverished area could offer significant incentives. These incentives could include tax breaks and a lower royalty rate. It will also enable the contracting parties to gradually strengthen their contributions to the fight against climate change in order to achieve the long-term objectives of the agreement.
Concession agreements can also be used to manage risk. Suppose a country invests a significant amount in the production of a single product. In this case, that country will have a particular high risk in terms of the price of that commodity. For example, the Brazilian and Mexican governments have invested heavily in state-owned oil companies. The value of their assets and income fell significantly when the price of oil fell in 2020. Countries that make concessions lose revenue from concession fees, but do not risk as much capital. A concession contract is a contract that gives a company the right to operate a business within the jurisdiction of one government or on the land of another company, subject to certain conditions. Concession contracts often involve contracts between the non-state owner of an entity and a dealer or dealer. The agreement grants the dealer exclusive rights to operate its operations in the facility for a specified period of time and under certain conditions. The EU and its member states are among the nearly 190 parties to the Paris Agreement. The EU formally ratified the agreement on 5 October 2016, allowing it to enter into force on 4 November 2016.
In order for the agreement to enter into force, at least 55 countries representing at least 55% of global emissions had to file their ratification instruments.