Breaking New Ground in Carbon Credit Markets
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Lawyers in Baker & McKenzie's Australian offices have concluded one of the first structured finance transactions in the international carbon market. Our client, Camco, is a leading climate change business and developer of Kyoto protocol projects. The arrangement used credits generated under the Clean Development Mechanism projects in China which were then structured under English law and sold into the European carbon markets.
The Camco carbon structured finance transaction has received significant commentary as a leading and ground-breaking deal in the carbon marketplace – one of the first to put in place the structures to enhance liquidity in the emerging international carbon market. Dealing with complex cross-border issues and innovative structuring techniques, the deal demonstrated the Firm's leadership in advising in the environmental markets and climate change areas, and combining this with innovation in structured finance techniques.
Paul Curnow, partner in Baker & McKenzie's Environmental Markets practice in Sydney, told James Eyers in The Australian Financial Review, "Baker client gets carbon to market", 26 September 2008, that once an emissions trading scheme was operational in Australia, such deals would become commonplace. Bruce Taylor, the Banking & Finance partner working on the deal in the Firm's Melbourne office, said "a lack of standardisation made documentation complex and one of the key challenges for lawyers in structuring deals was determining how risk was allocated".
Read more about Baker & McKenzie's
Environmental Markets practice here.