Glossary entry

Carbon Reporting

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Definitions

Contracts definition

Carbon Reporting means reporting of Greenhouse Gas emissions in rounded tonnes of carbon dioxide or Carbon Dioxide Equivalent (CO2(e)) to the [COMPETENT AUTHORITY] on an annual basis in accordance with the requirements of Regulation (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/EC of the European Parliament and of the Council, including verification of reports in accordance with Regulation (EU) No 600/2012 of 21 June 2012 on the verification of greenhouse gas emission reports and tonne-kilometre reports and the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council.

Model laws definitions

Option 1 (referring to carbon reporting by organisations)

Carbon Reporting means information on an organisation’s Greenhouse Gas emissions in tonnes of Carbon Dioxide Equivalent, to a standard not less than that required by the UK government’s Streamlined Energy and Carbon Reporting (SECR).

Option 2 (referring to carbon reporting at a national level)

Carbon Reporting means reporting of national inventories of aggregate anthropogenic Greenhouse Gas emissions by sources in tonnes of Carbon Dioxide Equivalent (CO2eq), using the global warming potential values as agreed by decision 24/CP.19 or any subsequent decision of the Conference of the Parties (COP) on global warming potentials, pursuant to Article 12, paragraph 1(a) of the United Nations Framework Convention on Climate Change (UNFCCC).

Drafting notes

Contracts definition

The definition can be amended to refer to other regulation/ legislation to which a particular organisation is subject or on which it seeks to base reporting obligations in contractual agreements. Alternatively, if any organisation is not subject to mandatory reporting requirements this definition could be amended to refer to a voluntary reporting standard that an organisation chooses to report against. For more information see the Carbon Footprint Standard definition.

Model laws definitions

This definition can be used to draft model laws including those suggested by TCLP.

  • Carbon Reporting currently forms a part of companies’ annual reports.
  • Carbon Reporting may also be implemented for internal reporting (including through group company structures and supply chains), and/or submissions to certain authorities/ regulatory bodies including as part of the EU Emissions Trading System.
  • EU member states may base legislative references to Carbon Reporting on the EU Governance Regulation (Regulation (EU) 2018/1999), which repeals the GHG Monitoring and Reporting Regulation 2013 ((EU) No 525/2013) that imposed monitoring and reporting requirements on the Commission and on member states, in order to meet UNFCCC and Kyoto Protocol requirements.
  • Some countries may decide to focus on reporting of CO2 emissions only rather than GHG emissions.

Application

Supply chain clauses, Companies Articles of Association, national climate laws, international agreements, project finance documents (e.g. loan, guarantee and recourse agreements, engineering, procurement and construction contracts).

Used in Gordon’s Clause [Construction Materials: Procurement].