The 2025 Advisory Opinion of the International Court of Justice (ICJ) argues that climate mitigation is a matter of state responsibility, requiring states to use all means at their disposal to prevent significant harm. This article proposes a Climate System Integrity Framework (CSIF), as the basis for a precautionary approach that treats the growing atmospheric greenhouse gas stock as a form of strategic climate capital reserve whose deterioration would generate widespread macroeconomic and financial instability. Introducing Carbon Removal Obligations (CROs) the framework assigns liability for overshoot of the strategic capital reserve, and internalizes risks through interest on the resulting carbon debt. The article argues that central banks and prudential financial authorities are among the state institutions best positioned to support the implementation of CSIF in line with the ICJ’s proposal for an international due diligence standard.
Authors: Michael Obersteiner and Johannes Bednar.
