Carbon Trading and Emissions Allowance Practice
Product and Industry Coverage:
- Carbon & Other Greenhouse Gas Emission Allowances
- Nitrogen & Sulfur Dioxide Emission Allowances
- Renewable Energy Credits and Green Certificates
Breadth of Experience
Carbon, Greenhouse Gas, SO2 and NOX Emissions Allowances
The firm has been active for some time in US state and federal aspects of the US NOX and SOX emissions markets, advising buyers, sellers and brokers in the registry, transfer, trading and deal documentation of emissions allowance transactions. Building upon this expertise, the firm’s trading and environmental practitioners have closely monitored global efforts at development of Greenhouse Gas containment and trading mechanisms as most recently embodied in the Kyoto Protocol and the European Union directives and member state implementations on this subject. We have advised project development and finance clients on the capture, allocation, certification and transfer of credits from projects having the potential to mitigate and reduce existing emissions and have advised clients attempting to internally evaluate and optimize their potential emissions exposures on a group-wide basis.
The firm’s most recent achievement in this area of practice was coordinating development of an Appendix to the EFET Power Master Agreement to facilitate the trading of EU Greenhouse Gas Emission Allowances, the early take up of which by industry players appears to be very significant. Firm representatives have also been active in coordinating the development of related transaction-based documentation within ISDA’s Emissions Trading Committee and in pursuing harmonization of the EFET, ISDA and IETA (International Emissions Trading Association) emissions trading documents. For more information, click the link below.
Renewable Energy Certificates and Green Certificates
We have assisted numerous clients in developing, reviewing and negotiating documentation for transactions involving the certification of traded energy from green and renewable sources, as well as derivative trading in the certificates themselves, unbundled from an underlying energy supply. We have aided utilities and other energy producers in responding and developing requests for proposal (RFPs) related to RECs in various states and for various programs (including RGGI) and developing the form documentation in such RFPs.
Ancillary Risk Management Advice, Document Preparation & Negotiation
Much like our Energy and Commodities Practice, Troutman Sanders has developed, negotiated, customized and advised on all manner of documentation related to carbon trading and emissions allowances, including transaction documents, master trading agreements (including master netting agreements or annexes) and credit and collateral arrangements (as necessary).
Overview
Whether your company is a major trading company, a new entrant in the rapidly growing and complex carbon and GHG field, a utility grappling with the carbon-constrained reality, a hedge fund looking for “green” investment or any number of other entities, carbon and GHG markets offer many opportunities but also many new risks and hazards. Troutman Sanders has the experience to advise you in these areas today and to help you chart your course into the evolving future.