Taylor Wessing advise on the establishment of the first CO2 emissions trading exchange in Europe

31-Jan-2005  |  Corporate
 

Taylor Wessing advised Climate Exchange Plc, whose shares are traded on the Alterative Investment Market of the London Stock Exchange, on the following investments in greenhouse gas ("GHG") emissions trading schemes;

- Substantial equity investment in Chicago Climate Exchange, Inc, a company which is believed to have established the first ever multi-sector voluntary carbon credit trading exchange; and

- Substantial investment in European Climate Exchange Limited, a company which has established the first carbon dioxide ("CO2") emissions trading exchange in Europe.

These investments are highly topical as a result of the increased interest in global warming and GHG emissions caused by Russia announcing that it will ratify the Kyoto Protocol. Upon ratification by Russia, the Kyoto Protocol will finally become legally binding on all signatory countries.

In November 2004, Climate Exchange Plc raised £15 million by way of a placing for the purposes of investing in Chicago Climate Exchange, Inc and European Climate Exchange Limited, being companies involved in the virtual trading of GHG emissions.

Simon Walker, corporate partner, commented: "We have acted for Climate Exchange Plc since its formation and the admission of its issued share capital to trading on the Alternative Investment Market of the London Stock Exchange in September 2003. We are delighted to have worked with the Company on its very successful placing and subsequent investments in Chicago Climate Exchange, Inc and European Climate Exchange Limited. It is very exciting to be in at the start of the evolution of the greenhouse gas emission trading markets and it will be very interesting to see how the market develops over the next few years."

The Company was advised on its placing and investments in Chicago Climate Exchange, Inc, and European Climate Exchange Limited by Taylor Wessing, and in particular by, Simon Walker, Alex Thomas and David Ponsford.  Irish legal advice was provided by Matheson Ormsby Prentice (George Bradley) and US legal advice was provided by McGuireWoods (David Guinn). 

CCX was advised by Simmons & Simmons (James Duncan and Richard Wallis).