The Voluntary Carbon Markets Integrity Initiative (VCMI), a global task force initiated to monitor the integrity of voluntary markets for the purchase and sale of carbon offset credits, held a global launch event and issued its consultation report (VCMI Report) in late July. The VCMI Report seeks to provide further guidance

On 15 July 2021, Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group (Steering Group), representing a critical mass of Hong Kong’s financial regulatory bodies, announced next steps to advance green and sustainable finance in the Special Administrative Region (the Announcement). According to the Announcement, the regulators will prioritize:

  • climate-related disclosures;
  • carbon market opportunities; and
  • a new cross-sector platform to help the financial industry manage climate change-related risks and opportunities.

In this Blog Post, we highlight key aspects of the Announcement and points for market participants to consider as Hong Kong moves toward a more sustainable future.


Continue Reading Mandatory Climate Disclosures, Carbon Markets Attract Regulatory Attention in Hong Kong

The EU has presented its proposal for a Carbon Border Adjustment Mechanism (CBAM). The mechanism is closely aligned with the EU’s emissions trading scheme and the purpose of the CBAM is to be able to increase the EU’s internal carbon price without pushing production offshore. This risk of “carbon leakage” arises when energy-intensive

In a keynote speech at the recent Climate Risk and Green Finance Regulatory Forum 2021, Ashley Alder, the Chair of the International Organization of Securities Commissions (IOSCO) and Chief Executive Officer of Hong Kong’s Securities and Futures Commission (SFC), addressed the “urgent need to retool the financial system to address the threat of climate change.” According to Mr. Alder:

“we are now in a crucial few months which will set the direction for years to come.”

Mr. Alder proceeded to highlight key climate-related issues that IOSCO is now addressing at a global level, effectively outlining the future of climate risk regulation by securities regulators. In this Blog Post, we discuss some of the key statements from Mr. Alder’s speech that foreshadow regulatory initiatives to come, as well as practical takeaways for market participants.


Continue Reading IOSCO Chair Outlines the Future of Climate Risk Regulation

The final rules governing China’s national emissions trading scheme (China ETS) took effect on February 1, 2021. In a recent Legal Update, we provide a reference point for international investors interested in participating in the China ETS by summarizing the final rules and comparing the China ETS with a scheme that may

Drawing on international experience such as the Renewable Fuel Standard, California’s Low Carbon Fuel Standard and the EU Renewable Energy Directive, the Brazilian Biofuels Policy (RenovaBio) was established in 2017 by Law No. 13,576/2017. It is designed to support Brazil’s commitments under the Paris Agreement, promote further expansion of the production and use of biofuels in the national energy matrix and improve the energy efficiency of biofuels.

In this Blog Post, we discuss key elements of RenovaBio, as well as early results of the policy’s implementation and other developments in the Brazilian carbon markets more broadly.


Continue Reading The Resurgence of Carbon Markets in Brazil: Championing Main Country Strengths – Biofuels and Forest Resources