VERIFIED CARBON CREDITS – HOW TO UNLOCK THE POTENTIAL

BACKGROUND

Both globally and in Denmark, the shift towards renewable energy sources has made VCCs crucial instruments for offsetting carbon emissions and promote further transition to renewable energy sources. The markets allow for the purchase of VCCs, but with a rapid development, little and scattered regulation, the marketplace has become a “grey-zone” for ad-hoc solutions between the market-frontiers and a patchwork of regulatory context, that have become difficult for companies to navigate in.

The VCCs have difficult legal characteristics and prompts for caution when traded by market participants. This seminar will explore a handful of key topics related to the origination, sale, and transfer of VCCs and addressing the challenges posed by diverse national regulations.

TAKEAWAYS

In this seminar you will be given a valuable insight into the current state of regulation and market contract practices when it comes to Verified Carbon Credits (VCC), and the Voluntary Carbon Market (VCM).

Our key-note speaker, Erik Rylander from Stockholm Exergi, will share practical insights of how to pave the road for reaching VCM off take agreements, such as the one for BECCS Stockholm just entered into between Stockholm Exergi and Microsoft - the world’s largest scope for permanent removals deal to date.

The panel of speakers will also share experience gained from some of the first Danish and international contracts related to the origination, transfer, and retirement of VCCs. We will discuss the use of the standard contracts developed by the International Emissions Trading Association (IETA) and other important legal issues pertaining to VCCs and the VCM.

The seminar will bring insights into the nature of the VCM from both a practical and a legal perspective, and covering regulatory barriers, the use of VCCs as legal instruments and selected legal challenges in terms of origination and transfer of rights and credits.

PROGRAM

15.00 – 15.15: Welcome and introductions  
by/ Klint Klingberg-Jensen, Partner, Poul Schmith & Flemming Pristed, Partner, Poul Schmith

15.15 – 15.45: Short introduction to the regulatory framework and legal characteristics of VCCs – the overview  
by/ Flemming Pristed, Partner, Poul Schmith

• This part of the seminar will offer an introduction to the regulatory landscape in relation to VCCs and the VCM, including perspectives on why it is both patchy and under constant development

• We will discuss the known and the known unknowns of the law regulating VCCs and the VCM

​15.45 – 16.15: Coffee break

16.15 – 17.15: Keynote speaker Erik Rylander - Entering into the Voluntary Carbon Market – opportunities and barriers based on real-world experience
by/ Erik Rylander, Head of Carbon Dioxide Removal, Stockholm Exergi and BECCS Stockholm

• The keynote will cover the recent deal between the BECCS Stockholm and Microsoft for the world’s largest permanent removals scope to date
• What are the opportunities and barriers of developing front-runner projects from the perspective of BECCS Stockholm and with a focus on i) regulatory barriers, ii) supply chain development, and iii) end customer requirements

17.15 – 17.30: Coffee break

17.30 – 18.15: VCCs – market practices on due diligence, offtake contracting and corporate and finance transactions
by/ Alex Blomfield, Partner & Ben James, Of Counsel, Simmons & Simmons, London

• Contracting for sale and transfer of VCCs – the form of contracting (key forms such as IETA and ISDA and bespoke contracts) and key dynamics in carbon contracting, including (i) the level of control over the project exerted by the carbon credit offtaker, (ii) the remedies for under/non-delivery, and (iii) future-proofing for changes in laws, regulations and the further development of the carbon markets (new labels, Art 6 etc.)
• Carbon Due Diligence – key topics and approaches
• Corporate & Finance Deals in Carbon – An overview of deal structures we are seeing in the market and related legal and commercial issues

18.15 – 19.00: Light food, drinks, and networking

TARGET GROUP

Market practitioners, including policymakers and in-house counsels working or anticipating in the near future to work directly with establishing VCC regimes or trading VCCs in a domestic or international context. Legal staff from public authorities, supervisory and regulatory bodies that regulate or supervise the transition towards renewable energy and/or the reduction or removal of GHG emissions.

PARTICIPATION AND CERTIFICATES

Participation is free.

Certificates for participation in accordance with the standards of the danish bar association will be send out after the seminar.

CONTRIBUTERS

STOCKHOLM EXERGI AND BECCS STOCKHOLM

As Sweden's leading district heating company with a €700 million in turn-over, Stockholm Exergi pioneers sustainable and circular heating, electricity and cooling solutions in Stockholm, Sweden. With a history of launching innovative solutions ranging from heat-recovery from data centers, advanced waste sorting to intelligent energy management, Stockholm Exergi is now working to become the largest supplier of permanent carbon removals within the European Union. Stockholm Exergi is owned by the City of Stockholm and a consortium of leading European pension funds (APG, Alecta, PGGM, Keva and AXA).

SIMMONS & SIMMONS

An international law firm that acts like your business partner. We were founded in 1896 by twins Edward and Percy Simmons. Since then we’ve never stopped learning, growing and adapting. We focus on four highly regulated sectors – using our specialist skills to understand your business and the forces at play around it. All grounded in exceptional knowledge of the legal detail.

We are committed to engaging fully in global climate emergency mitigation efforts and to making those efforts central to our business. We were the first international law firm to achieve carbon neutral status in 2006 and through our firmwide environmental sustainability network, we are committed to expansive thinking about the climate emergency and effecting meaningful change. This motivates us to seek opportunities to work with organisations which are making positive, high-impact contributions to the planet and which are seeking opportunities in decarbonisation and carbon finance. We are ideally placed to respond to the scope of work required for the carbon markets, bringing together expertise in M&A, financing, commodities and regulation with a deep understanding of international carbon finance and project development, and the voluntary carbon market.

POUL SCHMITH

With more than 830 employees, Poul Schmith is Denmark’s largest full-service law firm, with specialist competencies across all legal practice areas. Since 2018, Poul Schmith has built a significant competence profile within legal services tailored to the renewable energy industry, with a particular focus on renewable energy projects, CO2 soil sequestration, VCCs and VCM, CCS and associated contracts as well as ESG-regulation and sustainable finance. Poul Schmith assists a wide range of private and public clients within the renewable energy industry, including developers, engineering consultancy companies, suppliers, and regulatory and supervisory authorities.

SPEAKERS

• Erik Rylander, Head of Carbon Dioxide Removal, Stockholm Exergi and BECCS Stockholm
• Alex Blomfield, Partner, Simmons & Simmons, London
• Ben James, Of Counsel, Simmons & Simmons, London