International law firm Clifford Chance has created an environmental and climatic trading group, comprised of weather law specialists, to capitalise on the uncertainty surrounding the EU greenhouse gas emissions trading directive. The directive came into force on October 25 last year.The directive will potentially create a pan-European market for trading emissions quotas and weather products. Claude Brown, co-head of the new group, said energy merchants and other affected institutions could use the service to help understand the legislative and practical repercussions on their businesses.
The law firm estimates more than 550 million people and 14,000 installations in the public and private sectors will be affected. It claims 70% of UK businesses are affected by the weather. The market for weather risk management products has grown by 860% in Europe in the past two years, said Clifford Chance.
“Clients need to take into account many factors in accessing these markets and that’s where Clifford Chance comes in with our pan-European and focused expertise,” said Brown.
Clifford Chance said the group would hold a series of seminars in London, Amsterdam and Dusseldorf over the next three months to further help businesses prepare for the directive.
More on Commodities
Ice says move is “not an outcome we want to see” but Emir margin could drive users away
China will instead look to build futures trading onshore via the Shanghai Free Trade Zone
Dealers report significant spikes in volumes as oil hits a five-year low
Many have large unrealised losses from trades in second half of 2014
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.