Oslo Principles

Under the Oslo Principles, both states and enterprises have the obligation to ensure that global warming is limited to 2 degrees Celsius.[9] For this, they must reduce their greenhouse gas emissions “without relevant additional cost”.[10] Additionally, states and enterprises ought to refrain from starting new activities that cause excessive emissions, such as building coal-fired power stations.[11]

Additionally, the Principles state that developed and developing countries, and enterprises within them, must take measures to reduce greenhouse gas emissions when the costs of these measures will be offset by savings or financial gain. This principle applies to least developed countries, and enterprises within them, only when other entities provide the technical and financial means.[12]

Despite obligations on the amount of greenhouse gas emissions required, states and enterprises can decide themselves on which measures they use to achieve their obligations.[13]

The Oslo Principles state that all countries are subject to these obligations, no matter their contribution to total greenhouse gas emissions.[14] When national law or international agreements set out lower targets, the obligations under the Oslo Principles are not affected.[15]

States are required to reduce their greenhouse gas emissions to its permissible level as fast as reasonably possible within their jurisdiction.[16] The Oslo Principles state that the obligations of states to reduce greenhouse gas emissions are common, but differentiated: least developed countries are not obliged to pay for greenhouse gas emissions themselves.[17] Countries that are close to their allowed level of emissions are not obligated to reduce their emissions if it would be too difficult considering its wealth, needs, fossil fuel dependence and possibilities for renewable energy.[18] Countries that emit less than they are allowed still have a duty to avoid increasing emissions as the quantum of greenhouse gas emissions will go down over time. States must refrain from providing financing to projects that will increase greenhouse gas emissions unnecessarily high.[19]

If a country fails to reduce its emissions sufficiently despite its efforts, it must finance further emissions in countries that are below their maximum allowed emissions.[20] A lack of financial means does not allow a state to forgo its obligations, and states have an obligation to research ways to reduce emissions if they will likely not meet its obligations.[21] Additionally, countries have the responsibility to enact trade consequences for countries that fail to meet their obligations.[22]

States are also procedurally obliged to accept the jurisdiction of courts and publish information on climate change risks.[23]

Enterprises are obliged to assess their vulnerability to climate change and ways to increase their resilience. This information must be public and accessible to stakeholders such as investors, clients and regulators.[24] Fossil fuel companies specifically, must assess how restrictions on fossil fuel extraction will affect its financial situation.[25]

Enterprises have to consider the greenhouse gas effects in projects they are considering to finance and must conduct environmental impact assessments when building major new facilities.[26]