The Obligations of Transnational Corporations to Reduce Greenhouse Gas Emissions in the Framework of Market-Based Mechanisms With an Emphasis on Judicial Procedure (From the Jonah Gamber Decision to Advisory Opinions)

Document Type : Scientific research

Authors

1 Ph.D. Student in International Law, Islamic Azad University, Maragheh Branch, Maragheh, Iran.

2 Associate Professor, Nuclear Science and Technology Research Institute (NSTRI), Tehran, Iran.

3 Associate Professor, Department of Law, Shahid Madani University Of Azerbaijan, Tabriz, Iran.

Abstract
The transformation of the “scientific uncertainty” of climate change caused by human activities into a “clear scientific consensus” following the publication of the Fourth Assessment Report of the Intergovernmental Panel on Climate Change led to the international climate change regime relinquishing a greater share of climate commitments to the private sector. The development of the Guiding Principles on Business and Human Rights and the principles of the United Nations Global Compact led to greater legality and accountability of the private sector in environmental protection. In the case of “Milieu Defense v. Shell”, the Dutch District Court’s reliance on “accepted soft law instruments” alongside climate agreements enabled the court to rule on the need for commercial companies to adhere to climate commitments. This research, using a descriptive-analytical method and using international documents and case law, seeks to answer the question of what responsibilities and obligations commercial companies have in reducing greenhouse gas emissions and adopting mitigation measures? The research results show that in light of new legal developments, including linking the international human rights system with the international climate change system, the soft responsibility of non-state actors (such as commercial companies) regarding climate commitments is becoming legally binding. The research findings show that challenging commercial companies in climate lawsuits due to failure to fulfill climate commitments will force companies to make a green transition. Because facing climate lawsuits will lead to a decrease in stock prices, damage to reputation, reduce credibility, and reduce the incentive for companies to invest in the fossil energy industry.

Keywords

Subjects

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  • Receive Date 03 June 2025
  • Revise Date 27 August 2025
  • Accept Date 28 October 2025