LEGAL ARCHITECTURES FOR CARBON NEUTRALITY AND NET ZERO:  IMPLICATIONS FOR INDIA

ABSTRACT

The global climate crisis requires urgent action, with nations adopting carbon neutrality and  net zero as main approaches. Though used synonymously, the two are legally differentiated:  carbon neutrality allows offsetting, while net zero requires deep systemic reductions. This  article examines these differences, addresses international legal frameworks, and analyzes  India’s climate regime. It argues that India requires a stronger legal system via binding climate  law, increased corporate responsibility, and exercised judicial means in order to truly achieve  its 2070 net zero target.

INTRODUCTION

Climate change presents an existential threat, and it needs a unified global response. Carbon  neutrality and net zero terms are at the center of this response but have widely varying legal  connotations. For India’s 2070 net zero goal, it is imperative that these differences be defined  to create strong climate policies. This study explores the developing global legal architecture  of net zero commitments, assesses india’s current framework, and suggests reforms based on  international best practices in its governance.

MAIN BODY

Section 1: Distinguishing Carbon Neutrality and Net Zero

Climate pledge terminology is confusing because “carbon neutrality” and “net zero emissions”  are being used interchangeably. Legally, precise definitions are necessary to ensure precise  measurement and responsibility.

Carbon neutrality usually entails compensating for greenhouse gas (GHG) emissions by  removing them from the atmosphere, generally through carbon credits. The main concern is  that it doesn’t necessarily entail direct reductions in emissions, allowing for “greenwashing” if  organizations focus on offsets. Although generally used to describe carbon dioxide (CO2), the  term can be extended to all GHGs, leading to ambiguity.

In contrast, net zero primarily focuses on absolute reduction in emissions as the main strategy,  while offsetting is used as a last option for only unavoidable residual emissions throughout an  organization’s whole supply chain. The goal is to stop the net addition of atmospheric GHGs altogether. This more stringent method induces significant direct emission reductions. The  Intergovernmental Panel on Climate Change (IPCC) stresses that obtaining net zero GHG  emissions by making deep cuts is critical to limiting global warming, and such targets typically  encompass all major greenhouse gases.

“Net zero” is becoming widely seen as a more rigorous and ambitious requirement, and the  likely world standard for climate action. Fake claims are at risk of being challenged in law.  Firms across the world are sued for vague or deceptive statements, driven by fraud and double  counting allegations within the voluntary carbon market. Jurisdictions are changing to require  tangible action, imposing radical shifts in business practice to preclude punishment and harm  to reputation. Its legal codification follows the shift to net zero in accord with scientific needs  for deep cuts in emissions and increasing demands for examination of offset quality.

Section 2: Global and National Legal Frameworks

The global legal framework on climate change is premised on the UNFCCC (1992), the Kyoto  Protocol (1997), and the Paris Agreement (2015), which established Nationally Determined  Contributions (NDCs). NDC submission is legally obligatory, yet realization is contingent  upon national action. India’s enhanced NDC at COP26 targets non-fossil fuel energy, share of  renewable energy, 2030 reduction of emissions intensity, and 2070 net zero emissions. While  such NDCs are non-binding under the Paris Agreement, inculcation in strong domestic policy  is critical. The growing role of international tribunals on climate change creates a precedent for  more intense judicial action, even influencing Indian jurisprudence. India’s courts have actively  kept environmental concerns in check, frequently looking to Article 21 of the Constitution to  implicitly infer the right to a clean environment.

Around the world, diverse national and sub-national climate action legal frameworks offer  valuable examples. The European Union leads with its legally binding European Climate Law,  enshrining a 2050 climate neutrality target. The United Kingdom’s Climate Change Act (2008)  mandates net zero by 2050 with legally binding five-year “carbon budgets.” Germany’s Federal  Climate Change Act, with upgraded targets following a landmark constitutional court judgment  (Neubauer et al. v. Germany, 2021), illustrates judicial power in driving ambition.

India’s existing legal framework is robust when it comes to environmental protection but is  developing when it comes to holistic, binding climate-centric legislation. Constitutional  guarantees (Article 21, Article 48A) lend support at the foundational level, complemented by  chief environmental laws. The Energy Conservation (Amendment) Act, 2022, is a significant development for carbon markets, determining the Indian Carbon Market (ICM). India has a  2070 net zero vision but is not yet incorporated in a separate, standalone, binding framework  law with interim carbon budgets, as in the UK or Germany. Yet there are sectoral targets and  policies.

There are several global legal instruments that provide blueprints for India. Carbon pricing  schemes are the focus, with India adopting the CCTS. There is also a strong push for  renewables with ambitious goals, such as the Renewable Consumption Obligation (RCO).  Globally, there is a transition towards mandatory transparent corporate climate reporting and  disclosure. California has leading legislation (SB 253, AB 1305) on emissions reporting and  greenwashing. Europe has the extensive Corporate Sustainability Reporting Directive (CSRD).  In India, ESG disclosure is embedded through SEBI’s Business Responsibility and  Sustainability Reporting (BRSR) framework. Whereas BRSR reports Scope 1 and 2, and  optionally Scope 3, there is sufficient scope for requiring third-party assurance and more  stringent Scope 3 reporting to increase accountability.

Section 3: Strengthening India’s Climate Legal Framework: Key Opportunities

India’s climate action depends on strong enforcement and accountability. India can strengthen  its legal framework by:

1. Implementing a Comprehensive Framework Law: Statutorily entrench the 2070 net zero objective and institute legally binding carbon budgets within shorter timeframes (e.g., five-yearly cycles), with policy certainty and enhanced accountability.
2. Improving Corporate Disclosure and Anti-Greenwashing Legislation: Make third-party assurance for Scope 1 and 2 emissions mandatory and mandatory Scope 3 reporting by high-emitting entities. A separate legislation against greenwashing would enhance legal  action against misleading claims.
3. Utilizing Judicial Activism: Further build on the Indian courts’ robust legacy of environmental activism under Article 21 to use for climate litigation. Taking a leaf from cases such as Urgenda or Neubauer, citizens and NGOs might undertake climate cases  against governments or companies.
4. Legally Binding Sectoral Targets: Set legally binding GHG cut targets for key polluting industries (e.g., power, industry, transport, agriculture) in a national climate law with specific enforcement arrangements.
5. Including a Ratchet Mechanism: Place a mechanism in national legislation for frequent review and increase of targets in response to scientific advancement and global stocktakes, with the framework remaining ambitious.

DISCUSSION

India’s climate policy space is forward-thinking but disjointed. While schemes like carbon  markets and renewable obligations exist, the absence of a dedicated net-zero enforcement body  creates accountability gaps. The international trend towards litigating climate inaction,  evidenced by suits against governments and corporations, indicates India’s need to proactively  reinforce its legal framework. A robust system would mitigate risks of greenwashing, ensure  just transitions, and synchronize domestic laws with India’s international commitments. This  shift requires a fundamental change from policy-led initiatives towards a legally enshrined  system.

CONCLUSION

The carbon neutrality and net zero legal regimes are the foundation of the world response to  climate change. For India, the distinction is critical because carbon neutrality, with its tendency  to favor offsets, does not neatly map onto its 2070 net zero pledge. India, building its climate  legal framework, has its constitutional foundation and existing environmental legal framework  as a wonderful starting point.

India’s corporate disclosure rules, renewable energy mandates, and carbon market are being  updated in accordance with global best practices. There is also considerable scope to improve  these further. Cementing the net zero target in inclusive national law, establishing legally  binding interim carbon budgets, making more stringent climate disclosures subject to third party assurance, and applying judicial activism can considerably increase India’s climate  ambition. By selectively embracing global legal paradigms and applying them to its specific  socioeconomic reality, India can build a stronger, more transparent, and more enforceable legal  framework, propelling its transformation toward a sustainable, low-carbon economy and the  achievement of its ambitious climate goals.

REFERENCE(S)

International Agreements & Treaties

1. United Nations Framework Convention on Climate Change, May 9, 1992, 1771 U.N.T.S. 107.
2. Kyoto Protocol to the United Nations Framework Convention on Climate Change, Dec. 10, 1997, 2303 U.N.T.S. 148.
3. Paris Agreement, Dec. 12, 2015, T.I.A.S. No. 16-1104.

Legislation & Statutory Materials 

4. Energy Conservation (Amendment) Act, 2022, No. 19 of 2022, Acts of Parliament, 2022 (India).

Cases

5. Neubauer v. Germany, BVerfG [Federal Constitutional Court], Mar. 24, 2021, 1 BvR 2656/18 (Ger.).
6. Urgenda Foundation v. Netherlands, ECLI:NL:HR:2019:2007 (Supreme Court of the Netherlands, Dec. 20, 2019).

Books & Articles 

7. Bodansky, Daniel, The Art and Craft of International Environmental Law (Harvard Univ. Press 2010).
8. Rajamani, Lavanya, Innovation and Experimentation in the International Climate Change Regime (Brill 2020).

Online Sources

9. United Nations Climate Change, The Paris Agreement, https://unfccc.int/process-and meetings/the-paris-agreement
10. World Resources Institute, Net Zero Targets, https://www.wri.org/net-zero