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Report/Policy Paper

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Domestic laws and regulations are the ideal legal instrument to regulate the mining sector’s contribution to climate change mitigation and adaptation. Even so, as a stop-gap-measure in the absence of a robust legal and regulatory framework, governments may consider updating model mining development agreements (MMDAs) or negotiating climate­-related contractual provisions.

The CCSI paper Five Years After the Adoption of the Paris Agreement, Are Climate Change Considerations Reflected in Mining Contracts?, published in July 2021, explores whether governments are using, and how they can use, investor–state mining contracts to advance climate goals.

This companion piece expands the analysis, by examining risk allocation provisions that are commonly used or could be used in mining contracts and discussing how they should be drafted to clearly allocate the risks and impacts associated with the ever-worsening effects of climate change between states and mining companies.



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