Clifford Chance to advise on weather risk products

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.