Climate Recitals
Recitals that confirm the intentions of the parties to perform the contract in a way that reduces their organisational greenhouse gas emissions and the emissions associated with the contract.
What this clause does
These recitals make climate a key consideration for the contract parties. While non-binding, recitals that expressly refer to climate raise the prominence of climate in the contractual relationship and signal the importance of climate to the parties when performing the contract.
Clauses
(A) The parties [have signed up to the Race to Zero and] acknowledge their common intention to:
(1) achieve their respective [decarbonisation OR 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 Celsius above pre-industrial levels and achieve net-zero or net-negative emissions by 2050 or sooner.
(B) The parties agree to pursue [recital (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 recommended 7 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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