Climate clause

Climate Recitals

Eddie's Recitals

Recitals that frame a contract and the intentions of the parties in terms that are aligned with achieving net zero or net negative emissions and Paris Agreement goals.

This is a net zero clause

This clause aligns with Paris Agreement goals, Race to Zero requirements and the Oxford Principles for Net Zero Aligned Carbon Offsetting. For tools and support to use this clause, use our toolkit or join one of our events.

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Why use this?

These recitals powerfully frame contracts containing climate aligned or net zero drafting. The 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.

The clause

Additional 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% reduction of greenhouse gas emissions year on year.**


* [Drafting note: The term net zero target is also a defined term and should be capitalised when used as such in operative clauses in the main agreement.]

** [Drafting note: The recommended 7% 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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