Green Recitals
Recitals that confirm the intentions of the parties to perform the contract in a way that reduces their organizational greenhouse gas emissions and the emissions associated with the contract.
What this clause does
These recitals frame climate change issues as key considerations and place them at the forefront of the parties' intentions. This ensures that each contract helps to limit the global temperature increase to 1.5 degrees Celsius above pre-industrial levels and achieve net zero or net negative emissions by 2050 or sooner.
Recitals
(A) The parties [have signed up to the Race to Zero and] acknowledge their common intention to:
(1) achieve their respective net zero targets;* and
(2) align with the objectives of the UNFCCC’s Paris Agreement, in particular pursuing efforts to limit global temperature increase to 1.5 degrees Celsius above pre-industrial levels and achieve net zero or net negative emissions by 2050 or sooner.
(B) The parties agree to pursue (A) in a manner that promotes a just transition to a low-carbon economy and results in at least a 7 (seven) percent reduction of greenhouse gas emissions year on year.**
* [Drafting note: The term net zero target is also a defined term and should be capitalized when used as such in operative clauses in the main agreement.]
** [Drafting note: The recommended 7 (seven) percent figure is based on ‘The Carbon Law’ in Exponential Roadmap Initiative’s The 1.5°C Business Playbook, p.5; and J. Rockström et al., A roadmap for rapid decarbonisation, Science 355.6331, pp.1269-1271 (2017).]
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