GAS EMISSIONS: 43 lawyers join environmental group

Global giant Clifford Chance has launched a pioneering environmental and climatic trading group to exploit opportunities arising from the new trade in gas emission quotas.

The European Greenhouse Gas Emissions Trading Directive - which came into force in October last year - caps emission production within EU member states, but those countries that do not use up their quota of emissions will be allowed to trade their unused allowance.

Under this trading scheme, around 10,000 EU companies will be able (from 1 January 2005 onwards) to buy and sell permits to emit carbon dioxide.

The Clifford Chance group includes lawyers from the firm's public law, commercial, finance, projects, environmental and property departments, and is led by derivatives partner Claude Brown.

He said: 'With the trading scheme due to come into effect in 2004 and national allocation plans scheduled to be finalised by March 2005, the market for emissions trading is likely to offer many opportunities and challenges.

'Energy merchants, utilities, financial institutions and other organisations are keen to get to grips with this legislative whirlwind, and find out what it will mean for their day-to-day businesses.'

The group consists of 43 lawyers - all partners or senior assistants - in 16 European cities.

They will confer monthly on the latest issues affecting the emissions market.

Mr Brown said the department would become increasingly relevant with a second allocation scheme for sulphur dioxide emissions planned by the EU, and the possibility that the US might eventually ratify the Kyoto convention on climate change, creating new emission limits.

Jeremy Fleming