Carbon Credits Trading: Transactions and Contracts
Note: This service focuses directly on trading operations and brokerage activities, unlike Service #584, which deals with creation.
Carbon credits trading involves buying and selling already generated and certified credits on the secondary market. This process requires specific financial and legal instruments. Transactions are often carried out on Spot or Futures markets. Legal risks relate to "Double Counting," credit validity, and transaction transparency. In international trade, using ISDA (International Swaps and Derivatives Association) standards or similar framework agreements is essential.
This service is designed for traders, brokers, and corporations purchasing credits to offset their own emissions. Our lawyers ensure transaction security.
What Does the Credits Trading Service Cover?
Legal.ge offers:
- Purchase Agreements (ERPA): Drafting standard and customized Emission Reduction Purchase Agreements.
- Due Diligence: Checking the seller company and the origin of the credit.
- Regulatory Compliance: Adhering to financial monitoring and Anti-Money Laundering (AML) norms.
- Cross-Border Trading: Legal support for cross-border transactions.
Common Real-World Scenarios
Problems:
- Credit Cancellation: The purchased credit was cancelled by the regulator because the project did not meet standards.
- Price Fluctuation: The contract did not account for sharp market price changes.
Legal Framework
Regulated by the Civil Code and international trading standards.
Service Process
Check, contract, settlement.
Why Legal.ge?
We protect your financial interests in the carbon market.
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