Key Takeaways -

- While every arbitration is different, a ‘typical’ mid-size arbitration would generate anywhere between 30 and over 400 metric tonnes of carbon dioxide emissions depending on the number of submissions and hearings involved.

- Just as the remuneration of corporate executives is increasingly being linked to their ability to deliver on climate change goals, similar incentives could be put in place to encourage a reduction of emissions associated with the practice of international arbitration.

- Specifically, it is proposed that disputing parties could produce ‘carbon emission scorecards’ relating to their participation in an arbitration, which the tribunal could take into account when allocating costs (along with other factors such as the arbitration result and procedural conduct).

- Likewise, a portion of the fees paid to legal counsel, arbitrators, experts and other service providers could be tied to their green credentials consistent with the remuneration of corporate executives.

- Carbon emissions scorecards will educate parties, counsel and other participants on the environmental impact of arbitrations and thereby help reduce emissions.