Regulating Transnational Corporations for Reducing Greenhouse Gas Emissions

The rapid rise of transnational corporations (TNC) in recent years has made them the major sources of greenhouse gas emission. However, this situation has not been effectively controlled and regulated for a considerable amount of time. In this paper, the author argues that the obstacles for regulating the TNCs under the present international law system are embedded in the “Common but differentiated responsibilities” principle of the “United Nations Framework Convention on Climate Change” (UNFCCC). Furthermore, the problem also originated from the unwillingness and the inability of individual countries for controlling TNCs’ greenhouse gas emission. These factors above are all contributors to the widening gap in countries regulating the TNCs. TNCs are not the parties to be directly regulated under international law. At the same time, the liability mechanism is also absent; therefore, international law lacks the tools for regulating the TNCs’ greenhouse gas emission effectively. In this article, the author assesses the international law regulatory mechanisms on controlling the TNCs’ greenhouse gas emission - including UNFCC, United Union related mechanisms, the OECD, as well as the self-regulations of the TNCs as a group or individually. The essay will discuss on these topics above and then critically identify the shortcomings on the present system. The primary conclusion of the essay is on stressing the regulation of individual countries for controlling TNCs’ greenhouse gas emission. Reinforcing the regulation of TNCs in UNFCCC and the multilateral regulation and cooperation would also be required. The author argue that it is unlikely that states will agree to build the obligations of mitigation to TNCs backed by an international enforcement mechanism, and it is not necessary to do that. Moreover, the participatory role of the TNCs on the task of reducing greenhouse gas emission must increase, as to facilitate the technological resources of the TNCs so as to consolidate the legitimacy on regulating the TNCs. Lastly, the author suggests that under the “Common but differentiated responsibilities” principle, decreasing the regulatory gaps between countries is the most practical method of controlling the TNCs’ greenhouse gas emission.