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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 [insert common purpose between the parties, for example, where both have signed up to the Race to Zero, or both have set a Net Zero Target] and] acknowledge their common intention to: 

 

(1) achieve their respective [climate OR decarbonisation OR net zero] targets in a manner that promotes a just transition to a low-carbon economy; and

 

(2) align with the objectives of the Paris Agreement, in particular limiting global temperature increase to well below 2 degrees Celsius above pre-industrial levels and pursuing efforts to limit this to 1.5 degrees Celsius and achieve net-zero or net-negative emissions by 2050 or sooner. 

 

(B) The parties acknowledge their common intention to perform their obligations under this Agreement in a manner which facilitates the pursuit of their goals set out in recital

 

(A) [through credible and consistent carbon reduction] OR [through achieving year on year reductions in GHG Emissions consistent with the objectives in recital (A)].

Updates

January 2026

This clause has been updated following a routine Quality Assurance review. 

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