In Law360 Article Series, Akin Gump Lawyers Discuss Entry into Carbon Neutral Oil and LNG Transactions
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Law360 has published “Keys To Carbon Neutral Oil And LNG Transactions: Part 1,” written by Akin Gump partner Gabriel Procaccini and consultant Kenneth Markowitz.
With the Biden administration “accelerating decarbonization rapidly through executive orders, as is an increasing number of the world’s largest money managers through investment mandates,” the article offers some considerations for those seeking to enter into carbon neutral oil or LNG transactions.
Among the factors that Procaccini and Markowitz suggest are:
- Incremental cost of carbon credits as offset units (COUs), allocation and documentation
- Carbon trade regulations
- Advertising and marketing
Then, Procaccini and Markowitz look at some of the issues surrounding COU sourcing and quality assurance, and the processes by which the carbon footprint of transactions are measured.
The authors note that, as demand for carbon neutral oil and LNG transactions continues to accelerate, these transactions, if well designed, “will make oil and LNG more competitive environmentally with renewable energy in response to ESG pressures, climate change and the decarbonization megatrend.”
Part one of the article can be read by clicking here, and part two can be read here.
Both article installments were adapted from a blog post on AG Speaking Energy.
