The Chancery Lane Project expands to the USA
By Law News
Climate clauses that deliver legally enforceable decarbonization through contracts are now available copyright-free for attorneys, corporations, and stakeholders.
Nonprofit The Chancery Lane Project (TCLP) and US attorneys have collaborated to publish 10 climate clauses to date for use in contracts under US law. TCLP partnered with attorneys across the US to adapt TCLP’s existing clauses for use in the US and provide quality assurance. The clauses can be written into commercial agreements and other legal documents, enabling parties to legally address climate risks and regulatory requirements.
As global regulatory requirements tighten to deliver rapid decarbonization that is aligned with the Paris Agreement, the practice of climate contracting, which involves using clauses that reduce greenhouse gas emissions in contracts, has gained momentum and continues to grow in popularity.
TCLP’s decision to expand into the US, the world’s largest economy and one of the highest emitting countries, is reflective of the addressable market; annually, the legal sector generates USD $790 billion of revenues in servicing contracts that govern the vast majority of the USD $100 trillion global economy.
TCLP will release 10 clauses on September 19, with additional batches of adapted clauses to follow. They span legal practice areas such as construction, commercial transactions, and energy, and differ in climate ambition.
Becky Annison, TCLP’s Head of Engagement, said: “The risks of climate crises are felt more deeply year on year. Simultaneously, time is running out to protect the planet, protect businesses and make good on all the net zero goals set across the globe. Contracts, once signed, lock in carbon emissions for the duration, so early insertion of climate clauses is vital. Many lawyers now realize the power of contracts to make or break climate goals and manage climate risk and are gearing up their teams to take action. The publication of many of our clauses in the United States provides an amazing opportunity to American businesses to get a jump start. We look forward to seeing how these clauses pave the way for new legal solutions to climate issues in American contracts as they do in the UK.”
Teresa Garcia-Moore, Manager of Science and Impact at The Sustainability Consortium, comments: “We are now seeing a total shift in the way businesses view climate change. Addressing climate change is no longer a CSR exercise, but rather, a risk management one. Climate change poses a real threat to businesses, in terms of their bottom line, regulatory, supply chain, procurement and investment risk. And, with that shift, we have seen an increase in the number of attorneys being asked to address these issues for clients through climate contract law, which is one of the most effective ways for companies to protect themselves.
“That’s why The Chancery Lane Project’s climate clauses being available in the US is so significant. With the regulatory and business environments changing constantly to adapt to climate risks, these clauses are a fantastic resource for attorneys and firms looking to manage climate risk for their clients. We encourage lawyers and other organizations to leverage and incorporate these clauses into their contracts.”
- The Chancery Lane Project (TCLP) is a UK non-profit organization founded in 2019 that delivers climate contracting, which involves using clauses to reduce greenhouse gas emissions
- This move marks a significant step in TCLP’s global expansion, with climate clauses now available for use in the world’s largest economy
- TCLP has partnered with US attorneys and corporate counsel to publish 10 copyright- free climate clauses to use in contracts governed by US law