Gain-Share Incentive for Reducing GHG Emissions
This clause introduces a gain-share payment into a contract. Receiving a gain-share payment in exchange for reducing greenhouse gas emissions during the contract term is a powerful incentive for a party to decarbonise, especially in sectors that operate on narrow margins.
Summary: This clause incentivises a counterparty to reduce greenhouse gas emissions in exchange for a gain-share payment calculated by reference to the value of the goods or services it provides.
Please find the text for this clause on The Chancery Lane Project website here.
| Clause Type | Environmental |
| Jurisdiction | England and Wales |
| Industry | Multiple / cross-industry |
| Focus Area | Collaborative |
| Scope | product |
| Contract Type | Master Services Agreement (MSA), Construction Agreement |
| Relevant UNSDGs | Goal 13: Climate Action |
| Connecting Clauses | No |