Practices:

• Compliance and Investigations
• Corporate
• Economic Stimulus
• Environment, Energy & Product Regulation
  • Air Quality
  • Alternative Energy and Emerging Technologies
  • California Environmental Law and Policy
  • CERCLA, Remediation and Brownfield Redevelopment
  • Chemicals, Pesticides and Product Regulation
  • Climate Change
  • Energy
  • EU Environmental
  • Hazardous Waste Management and Materials Transportation
  • National Environmental Policy Act (NEPA)
  • Occupational Safety and Health (OSHA)
  • Water Resources
• Global Infrastructure and Public-Private Partnerships
• Government Contracts
• Intellectual Property and Technology
• International
• Labor and Employment
• Litigation
• Military Bases and Communities
• Political Law
• Public Policy and Regulatory Affairs
• Real Estate
• Supply Chain Management
• Tax

Climate Change

The rapidly changing legal, scientific, and political landscape of climate change presents a challenge to all industries. The potential impacts on business include limitations on a company’s ability to emit greenhouse gases, changes in the way a company’s goods may be produced and delivered based on their global warming potential; and identifying and capturing hidden economic values that may be realized through implementation of a climate strategy.

McKenna Long & Aldridge (MLA) Climate Change attorneys combine experience in energy, environmental, and natural resources law, government affairs, project finance, and project development to provide solutions that enable clients to better manage related risks and capture opportunities. We assist clients by:

• Helping develop strategic corporate climate strategies and corporate climate programs;
• Working with the company in determining greenhouse gas baseline emissions and assessing the technological feasibility of reducing emissions;
• Helping companies manage internal technical and economic data and analyses;
• Conceiving and documenting greenhouse gas transactions (trading, banking, offsetting);
• Purchasing in varied sectors (forestry, agriculture, alternative low-carbon energy sourcing, facility retirements, etc.);
• Handling legal and reputational issues with the board, the public, and adversaries; and
• Reacting to NGO campaigns.

The UN Framework Convention on Climate Change became effective in February 2005. More than 160 nations have ratified the Protocol and are legally bound by its terms. We advise companies with operations in signatory nations on compliance strategies; assessing trading regimes; and identifying and capitalizing on opportunities for offsetting emissions.

Although the U.S. has not ratified the Kyoto Protocol, many states are entering into greenhouse gas pacts (e.g., the Regional Greenhouse Gas Initiative, the Western States Pact) or passing their own legislation (e.g., California’s AB 32). The team helps clients prepare for, and manage, compliance with existing and emerging state and federal greenhouse gas schemes.

Emissions Credit Markets

MLA represents clients in creating, acquiring, and selling greenhouse gas emission credits, including use of Clean Development Mechanism and Joint Implementation transactions under the Kyoto Protocol. We draft emission reduction purchase agreements, assist with due diligence, prepare term sheets, provide advice on participation in the Chicago Climate exchange, and evaluate insurance products (e.g., technical trade insurance and carbon banking insurance).

Regulatory Policy

With climate legislation moving forward in both houses of Congress, industries must be vigilant in protecting their interests. Various industrial sectors may compete against each other to avoid receiving a disproportionately large obligation to reduce greenhouse gases in legislation. As a result, companies need to monitor and participate in the debate. MLA can assist clients in this effort by closely tracking climate change bills; preparing position papers, comments, and testimony on the effects of proposed legislation; and assisting in coalition-building and leadership.

Alternative Energy

We advise companies on the legal structuring, design, financing, and implementation of such businesses worldwide. This includes considering all of the organizational, contract, tax, environmental, permitting, operational, and regulatory issues involved in establishing a new business or project, as well as securing commercial, structured, and project financing to effect implementation. We also counsel companies individually and assist them in the formation of teaming arrangements or special purpose consortia, as they require.

Insurance

MLA also counsels insurance clients on the risks and opportunities associated with climate change. We advise insurers about the potential impacts of climate change in the claims, underwriting, and product development contexts. We also are actively following the implementation of the NAIC climate risk disclosure requirements for insurers and helping clients adapt to these evolving requirements. Given our experience with insurance and environmental litigation and counseling, we are well poised to handle climate change-related litigation.

Our climate change experience includes: 

• Providing insight and advice about climate litigation, NGO climate strategies, and related issues.
• Developing government-wide strategies and written comments to EPA under the Clean Air Act regarding the role of various emissions from biofuels, not only for the climate impacts of carbon dioxide emissions, but also for other criteria pollutants.
• Advising on the proposed Greenhouse Gas Report Rule.
• Co-founded and launched the Association of Climate Change Officers, the first organization dedicated to advancing the knowledge and skills of climate change professionals.
• Analyzing risks and opportunities presented by climate change for insurance industry clients and assisting them with mandatory climate risk disclosure matters.