Definition 1
Carbon Budget means the maximum amount of Scope 1, 2 and 3 Emissions the Company [and its Affiliates] may emit for the specified period and shall be [●] tCO2e (tonnes of Carbon Dioxide Equivalent) for the period [●] to [●], measured by an [independent expert] [Climate Professional] appointed by [●] in accordance with [the IPCC Sixth Assessment Report Global Warming Potential Values or most recent IPCC Assessment Report] [GHG Protocol].
Drafting notes and guidance
A system of carbon budgets (or interim emissions-reduction targets) is a useful tool for organisations to manage and reduce their carbon footprint and achieve their emissions-reduction targets.
Measuring emissions
Emissions are measured in carbon dioxide equivalent (CO2e or CO2eq), which represents different greenhouse gases in a single unit by converting them into the equivalent quantity of CO2, based on their global warming potential (GWP).
Independent verification
The definition suggests that the final value should be calculated by an independent expert, and the parties should consider what experience or qualification this expert should have and how any disagreements over the expert’s findings should be resolved.
Define the term ‘independent expert’ to remove uncertainty.