CLIMATE CHANGE: DESCRIPTION

The rapidly changing legal, scientific, and political landscape of climate change presents a challenge to virtually every industry.  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 LLP climate change attorneys bring together expertise in energy, environmental, and natural resources law, government relations, project finance, and project development to provide interdisciplinary solutions so that clients can manage risks and capture opportunities created by this emerging field.

Developing a Corporate Climate Change Policy

Climate change is revolutionizing the way corporations sell products and do business.  Every company with greenhouse gas sources needs a climate change strategy.  We assist 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 Kyoto Protocol

The United Nations Framework Convention on Climate Change became effective in February 2005.  More than 160 nations have ratified the Protocol to date 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. 

Domestic Regulatory Compliance

Although the United States has not ratified the Kyoto Protocol, many states are entering into greenhouse gas pacts (e.g., the Regional Greenhouse Gas Initiative, which a dozen northeastern U.S. states have signed, and the Western State pact signed by six western states) or passing their own legislation (e.g., California’s AB 32).  These state initiatives have accelerated the call for national legislation.  We help clients prepare for and manage compliance with these existing and emerging state and US greenhouse gas schemes.

Emissions Trading Transactions

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).

Government Advocacy

With greenhouse gas 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.

Project Development and Finance

Many companies are initiating alternative energy projects as an adjunct to their core energy businesses and as stand-alone ventures in the United States and overseas.  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 advise companies individually and assist them in the formation of teaming arrangements or special purpose consortia, as they require.