Buddle Findlay has advised public and private sector clients on climate change and emissions trading issues since 2003.  We have invested substantial time and resources to develop our expertise in the area, and are New Zealand’s leading law firm in the field.  We have a dedicated team of lawyers with a deep understanding of the area and can advise on all aspects of climate change legal issues, including regulatory requirements and the implications for business.

We understand the international framework established by the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol and keep up-to-date with international developments to anticipate their impact on New Zealand businesses.

Having advised clients on the development and implementation of the NZ ETS, we have a unique understanding of how the scheme is designed and operates.  Our expertise extends beyond the NZ ETS to other climate change-related regulatory instruments in New Zealand, particularly the Permanent Forest Sink Initiative.

We also understand carbon markets, and the challenges and opportunities these present for business.  Particular risks arise out of the international framework and countries’ own domestic emissions trading rules.  We understand these risks and advise on how to manage them.

We are members of the International Swaps and Derivatives Association and regularly advise on transactions involving the ISDA emissions trading annex.

We present, and contribute to publications, on climate change and emissions trading.  Recent publications include Brookers DSL Environmental Handbook, CCH Global Climate Change Law Guide and “Forestry in the New Zealand Emissions Trading Scheme: Design and Prospects for Success”, Carbon and Climate Law Review (Vol 3, 2008).

Clients and services

We have advised clients on every major climate change initiative, including:

  • New Zealand Emissions Trading Scheme (NZ ETS)
  • Projects to Reduce Emissions (PRE) programme
  • Negotiated Greenhouse Agreements
  • Permanent Forest Sink Initiative

Recent work

  • Advising Treasury and the Ministry for the Environment on the development of the NZ ETS (both the original 2008 legislation and the 2009 amendment Act)
  • Advising on the operation of the New Zealand Emissions Unit Register
  • Advising clients on the impact of the NZ ETS, including:
    • clients affected by the deforestation liability on pre-1990 forests
    • the potential to earn New Zealand units (NZUs) for carbon sequestration in post-1989 forests
    • whether carbon costs arising out of the NZ ETS are able to be passed on under contract, and drafting contractual clauses to allow pass through
  • Advising on a wide range of emissions trading transactions, including:
    • NZU sale and purchase agreements, including NZUs about to be transferred to owners of post-1989 forests
    • ISDA form emissions trading agreements for the sale and purchase of Certified Emission Reduction Units (CERs)
    • Assigned Amount Unit (AAU) sale and purchase transaction, involving AAUs transferred to participants in the Permanent Forest Sinks Initiative
    • advising 3 PRE project owners on the negotiation of emission reduction purchase agreements for the sale of Emission Reduction Units (ERUs) to European buyers
  • Advising on the income tax and GST treatment of emissions unit and units trades, including forestry units
  • Advising on the implications of the Emission Units, Settlements Systems, and Futures Bill
  • Advising the Department of Conservation on pilot projects to allow businesses to obtain emission units by investing in carbon sinks on conservation land
  • Advising on a potential investment in the Asia Development Bank Future Carbon Fund
  • Advising a carbon broker

Articles