In the Earth Summit, states acknowledged disparity of economic development between developed and developing countries. Industrialization proceeded in developed countries much earlier than it did in developing countries. CBDR is based on relationship between industrialisation and climate change. The more industrialized a country is, more likely that it has contributed to climate change. States came to an agreement that developed countries contributed more to environmental degradation and should have greater responsibility than developing countries. CBDR principle could therefore be said to be based on polluter pays principle where historical contribution to climate change and respective ability become measures of responsibility for environmental protection

The 'Doctrine of Polluter Pays' is a well-established principle of environmental law, which places an obligation of compensating the damage to the people who ought to reimburse it and also have the capacity to disburse it. The principle explicitly affirms that the person who damages or destructs the environment has the absolute obligation to bear the cost of ameliorating the environment. In Enviro Legal Action v. Union of India case, the Apex Court of India held that the polluter is legally responsible to reimburse the individual sufferers as well as pay for the revitalization of the damaged environment.

In the Earth Summit, CBDR principle was established to apprise that the pollution is beyond boundaries and to achieve environmental protection through means of cooperation. UNFCCC 1992,  Article 3 paragraph 1, "The Parties should protect the climate system for the benefit of present and future generations of humankind, on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities. Accordingly, the developed country Parties should take the lead in combating climate change and the adverse effects thereof.