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The definitions on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The definitions have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.
The definitions on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the definitions will achieve the relevant climate goal or any other outcome.
This website (and the Climate Contract Playbook) does not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and does not contain legal or financial advice. The definitions are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.
While care has been taken in the drafting of these definitions, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these definitions or any other person. Users should use their own professional judgement in the application of these definitions to any particular circumstance or jurisdiction or seek independent legal advice.
At present, all the definitions are based on the laws of England and Wales. We encourage the conversion of these precedent definitions for use in other jurisdictions.
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).
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.
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].
The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SI 2018/1155), which amend the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410)