40.1 The Company shall quantify and report annually on the Scope 1 and 2 [and 3] greenhouse gas emissions generated by the Project, in accordance with the [Applicable Law]/[Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.]
40.2 The Company shall reduce the greenhouse gas emissions of the Project annually [and shall in any event aim to achieve net-zero emissions by no later than [insert number] years after the Signature Date. Where, at least [insert number] years after the Signature Date, the Company has not reduced the greenhouse gas emissions of the Project such that the Project is on track to achieve net-zero emissions within this timeframe, the Parties shall meet to discuss the reasons for this and to negotiate in good faith any necessary variations to the agreement, including but not limited to:
(a) increases to the Rental Amount;
(b) changes to production practices, product transportation, land use, acquisition of new technologies, or any other aspect of Project Operations; and
(c) [insert other as appropriate].
40.3 The Company shall contribute [insert amount and currency] annually to a local climate change adaptation fund which shall be used to finance climate change adaptation projects identified by the Local Community in accordance with the Community Development Agreement referred to in Annex C.
40.4 The Company shall commit [insert amount and currency] annually to providing technical support and capacity development for [Legitimate Tenure Rights Holders]/[the Local Community]/[Contract Farmers] on [climate-resilient technologies and practices]/[accessing markets for payments for ecosystem services]/[insert other as appropriate for the Project]. The Company shall report annually on its implementation of this Section.
40.5 The Authority reserves the right at any time to seek renegotiation with the Company of any term of this Agreement as it deems necessary for the Government of the Host State to meet its nationally determined contributions under the Paris Agreement under the United Nations Framework Convention on Climate Change, as may be adopted or amended from time to time.
40.6 The Parties recognize that the Government of the Host State retains the right to enact and enforce bona fide laws and regulations in relation to the production and distribution of carbon-based energy sources and measures to address climate change, and other public interest issues such as air quality. Nothing in this Agreement shall restrict or alter this right or create or imply any limitation on the Government of the Host State, or any obligation to pay compensation with respect to future measures in this regard.15
For more information: See generally UNIDROIT & IFAD, 2021, Section 4.120 (Mitigating and Adapting to Climate Change); Aizawa & Mann, 2021, Section 4.5 (Anticipate and Manage Climate Change Risks).
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Order 88631 In the Matter of the merger of AltaGas Inc and WGL Holding Ltd., April 4, 2018, Public Service Commission of Maryland, Case 9449, referenced in Aizawa & Mann, 2021, p. 64.