A New Concept Introduced by the Paris Agreement
- What Is the Paris Climate Agreement and What Does It Encompass?
The Paris Climate Agreement is an international treaty that continues the process initiated by the United Nations Framework Convention on Climate Change, which entered into force in 1994. Its primary objective is to limit the accumulation of greenhouse gases in the atmosphere to levels that do not pose a danger to humanity and to protect the climate system for the benefit of current and future generations—on the basis of equity and in accordance with countries’ differing responsibilities and capacities.
What obligations does this agreement entail in order to reach its goals? There are three main targets: to limit the global temperature increase to well below 2°C above pre-industrial levels; to promote low-emission development in a way that does not threaten food production; and to align financial flows with pathways toward climate-resilient and sustainable development.
To achieve these goals, countries submit “Nationally Determined Contributions” (NDCs), and are expected to comply with the commitments outlined therein. Through these NDCs, countries pledge to reduce their greenhouse gas emissions in line with net-zero targets and to adapt to the adverse effects of climate change by identifying, addressing, and minimizing risks, losses, and damages.
While some argue that the Paris Agreement could hinder industrial development, this concern is difficult to justify. The “green transition” offers enormous potential for technological innovation, job creation, and investment. On the other hand, the historical responsibility for the accumulation of greenhouse gases lies indisputably with the United States and the European Union.
This agreement, which has introduced the concept of “climate justice” into global discourse, will activate emissions trading systems, expand forested areas, enhance biodiversity, popularize zero-waste initiatives, and prompt cities to develop plans to become more climate-resilient. All of this implies new rules, new regulations, and new practices.
- Does the Agreement Include Sanctions?
The absence of binding sanctions in the Agreement is a legally acceptable condition under international law. However, since the provisions of the Agreement are directly incorporated into domestic law, non-compliance with these provisions can easily give rise to legal proceedings at the national level. With the contributions of legal experts and other professionals such as mediators, who interpret how each provision of the Agreement should be understood, “climate litigation” can be addressed and resolved. As a result, the state—along with all its institutions and officials—municipalities, private companies, and international corporations operating in the country, have all become subject to potential litigation.
- Are Greenhouse Gases and Carbon Footprint the Same? What Is the Carbon Border Adjustment Mechanism (CBAM)?
No, they are not the same. Greenhouse gases are gases in the Earth’s atmosphere that trap heat. A carbon footprint, on the other hand, refers to the amount of greenhouse gases released into the atmosphere as a result of an individual’s or a company’s activities.
The European Union (EU) currently regulates carbon emissions from producers operating within its borders through carbon pricing mechanisms and applies a carbon tax. However, this has not been fully effective in reducing emissions and has led to production shifting to countries where emissions are unregulated—resulting in what is known as “carbon leakage.”
The Carbon Border Adjustment Mechanism (CBAM) is a system designed to prevent EU producers from relocating to countries with weaker or no carbon regulations and to protect them from unfair competition. CBAM aims to tax imports of products with a high carbon intensity to the EU market, particularly those deemed at risk of carbon leakage.
The proposed CBAM currently applies to products imported into the EU in five sectors: cement, electricity, fertilizers, iron and steel, and aluminum. Producers operating in these sectors are required to obtain CBAM certificates for exports to the EU.
Calculating carbon emissions in these sectors is based on highly complex methodologies, and because they differ from the EU’s own standards, certain trade-related challenges have emerged. It is also possible for companies within the same sector to face accusations of anticompetitive behavior or engage in unfair competition.
Since resolving trade-related disruptions and administrative issues through litigation is often impractical, mediation can play a crucial role in preventing and resolving these conflicts within the commercial sphere.
- What Is the Role of a Mediator in the Implementation of This Law?
Considering the sectors covered by the Carbon Border Adjustment Mechanism (CBAM), the volume of trade, and the number of countries affected, mediation will play a particularly effective role in resolving potential disputes arising from this relatively new and distinct mechanism. As a constantly evolving field, climate law presents challenges that can often be addressed more efficiently through mediation rather than litigation. Mediation offers a path to resolution that is not only faster but also more likely to satisfy both parties, especially considering that court verdicts often leave at least one party dissatisfied.
Frequent amendments in the laws, regulations, and directives that form the foundation of climate law lead to inconsistencies in judicial interpretations. Mediation provides a constructive avenue to overcome dissatisfaction caused by such discrepancies.
Recent legal developments point to a narrowing of the scope of “public order” while expanding the scope of disputes parties may freely settle. This expansion in climate-related legal matters suggests that more conflicts may now be eligible for mediation.
In situations where it is unclear whether mediation is a mandatory precondition in climate law disputes, it is advisable to treat such disputes within the mediation framework—provided all other formal requirements are met—as this would better serve the interests of the parties involved.
Looking at the legal regulations that govern sectors under the Climate Law, it becomes clear that entities operating in these markets are generally private legal entities subject to the Turkish Commercial Code. These legal persons are usually structured as joint-stock or limited liability companies and, as a rule, are governed by private law provisions.
According to Article 4 of the Turkish Commercial Code (TCC), for claims involving monetary obligations or compensation, mediation is a mandatory precondition before filing a lawsuit. While not all climate-related disputes fall under the category of absolute commercial cases, those involving commercial enterprises, contracts, and competition may still be classified as commercial in nature. Therefore, if these disputes involve claims for payment or compensation, mediation will be compulsory.
In labor disputes that may arise within such enterprises, mediation is likewise mandatory.
Due to the need for specialized legal expertise and the variety of legal outcomes depending on the nature of each dispute, alternative dispute resolution methods beyond formal litigation are increasingly sought in climate law. Different procedural rules and legal principles apply depending on the type of dispute and its jurisdiction.
Given the demand for speed and practical outcomes in labor disputes, mediation presents itself as a reasonable solution.
For all these reasons, considering the unique characteristics of climate law disputes, mediation proves to be a flexible method. It also allows the participation of technical consultants, legal experts, and professionals with in-depth knowledge of the economic and operational aspects involved—further enhancing the effectiveness of dispute resolution.
Thus, the suitability of mediation for the types of disputes outlined above must be thoroughly evaluated.