Abatement Measures

Drafting notes and guidance

Mitigation hierarchy

Abatement measures rank first on the mitigation hierarchy. A mitigation hierarchy is a strategy to reduce a contract party's environmental impact that prioritises reducing value chain emissions before any other type of measure. For more information, see TCLP glossary term Mitigation Hierarchy.

Examples of abatement measures

Examples by sector are:

1. Energy: emerging technologies, Carbon Capture and Storage (CCS).
2. Real estate: insulation of new buildings, retrofitting of older buildings, energy efficiency and alternative energy sources.
3. Consumer discretionary and staples: increase energy efficiency and use of alternative energy sources, behavioural change (e.g. consumers eating less meat).
4. Transport: shift to rail transport, electric vehicles, reducing international business travel, prevent takeoff of empty airplanes.
5. Capital goods: increase energy efficiency in electrical, construction and engineering equipment.
6. Forestry and agriculture: prevent deforestation in tropical areas, encourage land restoration, reducing methane emissions from livestock through improved processing of manure.

Important considerations

Abatement measures can be implemented by governments, corporates, non-corporate entities or individuals. There are a wide variety of measures that can be taken. The GHG savings achieved will vary depending on geographical location, culture, sector and the parties involved.

When choosing which abatement measures to use, consider:

• Relevant sector.
• Geographical location.
  • When identifying appropriate abatement measures, consider the abatement measures that are already in place (or supported) in the relevant location or sector.
• Number of emitters and volume of their GHG emissions. For example:
  • The fuel and energy sector is characterised by a relatively small number of emitters producing large amounts of GHGs.
  • The forestry and agriculture sector is characterised by billions of emitters producing small amounts of GHGs.
• Local and national policy that have a practical and financial impact on the parties to the contract.
  • Policies determine the efficacy of abatement measures, in particular by reducing or removing associated costs.

Neutralisation measures

Carbon Capture and Storage (CCS) technologies that prevent the release of GHGs at source are abatement measures. CCS technologies that remove GHGs from the atmosphere are Neutralisation Measures. Lawyers should understand the relevant CCS technology to determine whether it is an abatement measure (prevent release) or a neutralisation measure (remove).