Emissions-Linked Trading in the US and EU 2022 | Practising Law Institute (PLI) | 28 February 2022 | Online

The underlying rationale for emissions trading is that derivatives could save the planet…or could be an influence for good at the very least.

Emissions trading is an asset class which is purely a creature of regulation, and that leads to many intricacies, nuances, and traps for the unwary, which are not found in other types of product or derivative.

Interest in emissions credit for trading, and as underlying assets for OTC derivatives and structured products on the rise again.

During this briefing the spakes will discuss key issues including:
• The underlying asset: relevance of the Kyoto Protocol; the “COPs”; and EU, UK and US climate change action initiatives (10 minutes)
• Emissions trading regimes (10 minutes)
• ISDA, EFET, and EFET documentation platforms (10 minutes)
• Regulatory treatment of emissions products in the US (i.e., as Swaps, Futures or Forwards) (10 minutes)
• Using emissions allowances as an underlying asset in structured products, including property rights issues in different EU Member States, as well as issues with taking security (10 minutes)
• Awareness of fraud issues (10 minutes)

Intended Audience: In-house counsel, outside attorneys, compliance, finance and other allied professionals involved in emissions-linked trading

2022 Speakers

Matthew F. Kluchenek
Partner, Mayer Brown LLP

Edmund Parker
Global Head, Derivatives & Structured Products, Mayer Brown International LLP

Amy R. Taub
Director, PLI’s One-Hour Briefing Product