Private Climate Governance (PCG) represents a paradigm shift in addressing climate change, as non-governmental entities—such as corporations, non-profits, private universities, and religious organizations—take on roles traditionally reserved for governments. By engaging in mitigation and adaptation activities, these actors extend the boundaries of private environmental governance and play an increasingly vital role in complementing state-led initiatives. This paper explores the legal and economic dimensions of PCG, focusing on how international environmental law (IEL)can adapt to integrate and enhance private governance mechanisms to strengthen climate action.
Through a combined legal and economic lens, the study investigates market-based incentives such as voluntary carbon markets, corporate sustainability initiatives, and green finance. This paper also examines the challenges PCG faces, including enforcement limitations, greenwashing, and disparities in the costs and benefits of climate action between developed and developing countries.This paper argues that IEL must evolve to support PCG and proposes policy recommendations to enhance its effectiveness.
Keywords: Private Climate Governance, International Environmental Law, Climate Change,Economic Incentive