Glossary entry

Greenhouse Gases (GHGs) & GHG Emissions

Definitions

Greenhouse Gases

Option 1

Greenhouse Gases (GHGs) means the natural and anthropogenic gases which trap thermal radiation in the earth’s atmosphere and as specified in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) [or otherwise specified by the UNFCCC at the date of this agreement]. [These GHGs are currently: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3).]

Option 2 (as defined in Owen’s Clause)

Greenhouse Gas means gases that contribute to or accelerate the greenhouse effect by absorbing infrared radiation, including but not limited to: carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, hydrofluorocarbons, perfluorocarbons and chlorofluorocarbons.

GHG Emissions (as defined in Zoë and Bea’s Clause of the TCLP Contract Playbook)

GHG Emissions means emissions of the greenhouse gases listed at Annex A of the 1998 Kyoto Protocol to The United Nations Framework Convention on Climate Change, as may be amended from time to time including: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6), each expressed as a total in units of carbon dioxide equivalent (CO2e).

Drafting notes

The GHGs covered by the UNFCCC and subsequent international agreements may change as scientific knowledge evolves. Optional wording is included in the definition to capture other climate forcing gases that the UNFCCC may include within the international agreements.

You may wish to include other, optional GHGs (for example, GHGs regulated by the Montreal Protocol on Substances that Deplete the Ozone Layer) within the scope of the relevant agreement. The GHG Protocol includes optional GHGs within its reporting requirements in certain circumstances including as long as the 100-year Global Warming Potential (GWP) values for these GHGs have been defined in IPCC Assessment Reports (see GHG Protocol: Required Greenhouse Gases in Inventories (PDF)).

Application

Supply chain clauses, national climate laws, Articles of Association, finance documentation.

Greenhouse Gases used in Isabelle’s Clause [Standard environmental warranties and representations (for a buy-side agreement)], Zain’s Clause [Mutual Sustainability Rights], Austen’s Clause [Sustainability Clauses in Supply Chain Contracts], Alex’s clause [Circular product design obligation], Archie’s Clause [Premium adjustment for D&O Climate-related financial disclosures], Zack’s Clause [SPA/Investment Agreement Warranties], Gordon’s Clause [Capital Markets Due Diligence Questionnaire] and Tristan’s Clause [Construction Materials: Procurement].

GHG Emissions used in Gordon’s Clause [Capital Markets Due Diligence Questionnaire].