Carbon Contracts Cornerstones - Drafting Contracts for the Sale of Project-Based Emissions Reductions

IETA Discussion Paper No 02-01

19 Pages Posted: 22 Jul 2002

See all articles by James Cameron

James Cameron

Baker & McKenzie LLP, London

Anthony Hobley

Baker & McKenzie LLP, London

Duncan Reid-Thomas

Baker & McKenzie LLP, London

Mina Guli

World Bank

Date Written: April 8, 2002

Abstract

The Kyoto Protocol is not yet in force, the exact nature of domestic legal regimes governing reductions in emissions of Greenhouse Gases is (in most countries) still not known, there is no regulated scheme for transactions involving project based emission reductions and the market for such emission reductions is not yet liquid. As such, the proper drafting of contracts for the transfer of ERs from one party to another party is vitally important. This discussion paper has been produced by IETA Member Baker & McKenzie as a common starting point for the preparation of Carbon Contracts in the carbon trading market. The objective is to begin the process of standardizing the Carbon Contract process to help facilitate trades and emissions projects by streamlining the contractual process so helping to reduce transaction cost. It is envisaged that this Paper will mark the beginnings of a process to develop standardized carbon contracts for different types of transactions. This process will it is hoped develop and mature alongside the carbon market.

Keywords: Emissions trading, Contracts, Project Mechanisms, emission reduction, kyoto protocol

JEL Classification: K0, L1, Q2

Suggested Citation

Cameron, James and Hobley, Anthony and Reid-Thomas, Duncan and Guli, Mina, Carbon Contracts Cornerstones - Drafting Contracts for the Sale of Project-Based Emissions Reductions (April 8, 2002). IETA Discussion Paper No 02-01, Available at SSRN: https://ssrn.com/abstract=317559 or http://dx.doi.org/10.2139/ssrn.317559

James Cameron (Contact Author)

Baker & McKenzie LLP, London ( email )

100 New Bridge Street
London EC4V 6JA, EC4V 6JA
United Kingdom
+44 20 7919 1000 (Phone)
+44 20 7919 1000 (Fax)

Anthony Hobley

Baker & McKenzie LLP, London ( email )

100 New Bridge Street
London EC4V 6JA, EC4V 6JA
United Kingdom

Duncan Reid-Thomas

Baker & McKenzie LLP, London ( email )

100 New Bridge Street
London EC4V 6JA, EC4V 6JA
United Kingdom

Mina Guli

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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