Global deal “back on track”, says Huhne

The deal, signed by 190 countries, agrees to peak emissions and an overall 2 degree target to limit temperature rises, but crucially does not set out a mechanism by which to achieve this.

The agreement also backs a £64 billion annual Green Climate Fund. The aim of the fund is to help developing nations tackle climate change. 

The agreement addresses deforestation, agreeing to slow, halt and reverse destruction of trees and agree the rules for delivering it and for monitoring progress. It also addresses technology and climate adaptation, setting up the mechanisms to help developing countries access low carbon technology, and adapt to climate change.

Climate Change Minister Greg Barker said the deal was good news for businesses and the green economy.

"Cancun will send a strong signal of confidence to business investing billions in the new global green economy. British companies are poised to reap the huge advantage of being the first movers in this rapidly expanding market. We will be working in partnership with the private sector to drive home that opportunity."

Business groups and NGOs welcomed the deal, today, but said much more needed to be done.

"Cancun is a step forward but there is still a long way to go. Businesses are committed to tackling climate change, but there is only so much they can do without a comprehensive global agreement on emissions reduction," said Neil Bentley CBI director Business Environment. "Such a deal could unlock great new low carbon markets for our economy, and until this is reached, concerted action will be slow. 

"We must use progress at Cancun as a starter's pistol for getting a legally binding deal next year that will cut emissions and help drive green growth."

The Climate Group, an NGO working internationally with business and government, said the Cancun deal addressed all the issues on the table.

"Agreement in Cancun is a major shot in the arm to the international climate process," said Mark Kenber, deputy ceo of The Climate Group.

"The Cancun decisions address all the major issues on the table including those that proved so contentious in Copenhagen and should give business more of the certainty it needs to invest in the low carbon economy. Obviously, much work remains to be done but we should now see real collaboration in financing, technology, adaptation, and forest protection. These will provide solid foundations for a new international climate deal."

The deal is being viewed positively because the Cancun talks looked only hours earlier to be heading nowhere because of differences between rich and poor countries and in particular over a growing dispute over the future of the Kyoto Protocol, the only binding emissions reduction agreement between countries.

During the two weeks of negotiations Russia and Japan both said they opposed a second term of the Kyoto Protocol.

Huhne said the focus post-Cancun had to be on clinching a final deal. "We’ve now got to use this momentum to make urgent progress and lock down that deal – a deal that will benefit our environment and our economies," he said.