Out-Law Analysis 1 min. read

Don’t forget green arbitration protocols as in-person hearings return

Green traffic light in the city _57355070 seo


Since the lifting of worldwide Covid-19 restrictions, arbitration practitioners have noticed a trend towards merits-based arbitration hearings being held in person, rather than virtually.

While legitimate concerns might have prompted the decision to hold a hearing in person, the carbon emissions caused by increased air travel as a result are considerable. A case study of one major international arbitration by the Campaign for Greener Arbitrations suggested that nearly 20,000 trees would be required to offset its total carbon emissions. Long-haul flights alone are thought to contribute over three quarters of these total emissions.

Greener arbitration guidance

In cases where parties have elected to have an in-person hearing, the Campaign for Greener Arbitration Protocols provide guidance for offsetting residual emissions caused by air travel. A carbon offset is a reduction or removal of one metric tonne of carbon dioxide (CO2) from the atmosphere that is used to compensate for emissions that occur elsewhere. 

Most law firms have internally approved corporate offsetting standards. The Protocols recommend that, in the absence of these standards, legal advisors should endeavour to offset their emissions through schemes that have been accredited as meeting the highest available sustainability standards, such as the Gold Standard or Verified Carbon Standard.

Pamela McDonald

Pamela McDonald

Partner, Head of Office, Doha, Co-head of International Arbitration

Financing or providing the funding for travel-related emission reductions ... represents an evolution from carbon management to climate stewardship

According to the Protocols, parties and tribunals should consider offsetting flights, and enable arbitrators to include the costs of offsetting their flights in their expenses. Parties should agree that the costs of offsetting air travel may be allocated by the tribunal as part of a costs award at the end of proceedings, or as otherwise agreed between the parties.

The Gold Standard is an organisation that manages best practice standards for climate and sustainable development interventions. As a means of mitigating carbon emissions, its recommendations (13 pages / 1.59MB PDF) include companies purchasing carbon credits, which can be traded. This is an essential means of meeting the ambition of the Paris Climate Agreement.

Another option available, if international travel becomes necessary as a result of an in-person hearing, is financing or providing the funding for emission reductions. This represents an evolution from carbon management to climate stewardship. The Verified Carbon Standard is a widely used greenhouse gas crediting program. It is a voluntary carbon market, which drives finance towards activities that reduce and remove emissions, improve livelihoods and protect nature.

In addition, airlines typically offer passengers the option to offset carbon directly when booking a flight, and it is usually possible to check whether the airline itself is certified by a verified scheme like the Gold Standard or Verified Carbon Standard. While carbon offsetting is an available option, and should be adopted if air travel becomes necessary, the sustainability measures contained in the Protocols are aimed at encouraging changes which reduce the environmental impact of arbitrations, and priority should be given to their implementation.

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