Carbon trading is a market-based system aimed at reducing greenhouse gases that contribute to global warming, particularly carbon dioxide emitted by burning fossil fuels.
Carbon trading can be: (i) regulatory or compliance emissions trading markets where emission allowances are required to satisfy regulatory 'cap and trade' obligations, thereby encouraging reductions in emissions, or (ii) on voluntary carbon markets where voluntary credits are issued by accredited projects producing reductions in or avoidance of emissions.
We advise clients in all aspects of regulatory and voluntary carbon market trading, regulatory requirements of trading schemes and investments into carbon reduction projects and project developers.
We act for a wide variety of project developers and investors, financial participants and corporates.
Our deep bench expertise covers advising on:
- net zero and other targets, and how to build carbon offsetting into target implementation.
- assistance on selecting offset partners.
- structuring of purchases/purchasing arrangements and documenting transfers of credits to ensure ready supply of offsets and risk mitigation.
- establishment of standalone projects for offset purchases, and minority investments in project companies/developers, including all necessary documentation.
- legal due diligence on offset projects.
- trading allowances, credits and environmental attributes on the regulated markets.
- carbon reduction obligations for operators under emissions trading schemes.
- all aspects of carbon finance and funds.