Limiting the rise of global temperature to 1.5 degrees Celsius requires significant investment in the deployment of net-zero aligned technologies, the development of scalable CCUS and other low-carbon projects, and funding for innovative climate mitigation solutions. Lawyers in our Chambers-ranked corporate, securities, finance, project finance, and M&A practices are immersed in transactions expanding the global deployment of sustainable resources and procurement of renewable energy to meet net-zero targets and achieve corporate carbon reduction goals.
As companies continue to execute on their net-zero and climate strategies, global investment in the low-carbon energy transition has surged to new record. Covington’s corporate and transactional lawyers advise clients on structuring and taking advantage of sustainability-linked loans and other green finance to help achieve corporate decarbonization goals. In coordination with our tax practice, we advise clients on deploying technologies benefitting from the Inflation Reduction Act (IRA) and other state and federal policies to catalyze investment across a broad range of technologies.
Our team’s deep industry knowledge allows us to identify cost-efficient carbon removal and avoidance projects and other Paris-aligned investment opportunities. Leveraging our existing relationships with carbon technology start-ups and energy companies, we help clients explore potential targets for strategic joint ventures and acquisitions. In addition, we guide clients through the environmental review and permitting process for clean energy, low carbon, and other sustainable infrastructure projects, as well as opportunities to accelerate development by leveraging Federal and state funding opportunities and incentives.
Covington has unparalleled experience with the voluntary and regulated carbon markets. We help companies access the voluntary carbon markets to increase their near-term ambition and scale investment in a range of nature-based solutions, CDR technologies and avoided emissions strategies, both within and beyond their value chain. We help companies strategize and develop innovative structures and first-of-their kind transactions across the carbon supply chain – from developers and sponsors of removal and reduction projects, to corporate procurement teams.
We have extensive experience advising on carbon transactions and climate-focused investments, including:
- Transactional and due diligence support for investing in decarbonization projects and start-ups;
- Advising on sustainability-linked loans, grants, and other green finance products tied to key performance indicators related to a company’s GHG emissions reduction goals;
- Structuring complex transactions in the mandatory and voluntary carbon markets (VCM);
- Developing innovative products and platforms to increase liquidity in the VCM;
- M&A activity in renewable energy and low-carbon assets;
- Joint ventures and strategic collaborations around carbon removal strategies and low-carbon technologies;
- Corporate venture investments and emerging company representations to develop and commercialize innovative carbon management technologies;
- Advising on the environmental review and permitting process for low-carbon and sustainable infrastructure projects, including representation before permitting agencies and meaningful engagement and partnerships with communities, NGOs, and key stakeholders;
- Partnerships with credible stakeholders to scale investments in nature-based climate solutions; and
- Expansion of global carbon markets.
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