Our work

New Zealand's Emissions Trading Scheme
Sole legal adviser to New Zealand's Ministry for the Environment on commercial legal issues associated with the development of the New Zealand Emissions Trading Scheme (ETS). This built on the firm's previous advice to the Ministry of Economic Development on the design of the legal framework for emissions trading.

Development of carbon trading platform
Advised New Zealand's Ministry of Economic Development on legislative changes required to enable the New Zealand Stock Exchange to establish a carbon trading platform for the purpose of exchange trading Kyoto-compliant emission units.

Bangladesh – obligations under United Nations conventions
Advised Bangladesh, the country most significantly affected by climate change, on its negotiating position and key objectives at the Cancún United Nations Climate Change Conference. This work included advising the Bangladesh Parliament on the link between climate change and human rights obligations under United Nations conventions.

Standardisation of ISDA documentation for global trading
Authored comprehensive International Swaps and Derivative Association, Inc. (ISDA) documentation tailored to the New Zealand Emissions Trading Scheme enabling trading between New Zealand parties as well as trading outside New Zealand. This form of agreement is a key document which Bell Gully has later drawn on to advise ISDA on provisions required to standardise a global trading document.

World's first carbon deal for avoided deforestation
Advised the Government of Aceh (Indonesia) on a deal which will protect Aceh's rainforests from logging for up to NZ$1 billion in carbon credits over the next 30 years. This is the world's first carbon deal for avoided deforestation.

International trading of ERUs
Advised an international investment bank on the purchase agreement for the proposed sale of 250,000 Emission Reduction Units (ERUs) from a New Zealand wind farm for the purposes of on-selling in the EU emissions trading market. During the course of this deal, we identified a conflict between the New Zealand and United Kingdom interpretations of the relevant Kyoto Protocol rules, which led to legislative change in the United Kingdom.

Opportunities for generating CERs in Indonesia
Advised the Governor of Central Kalimantan (Indonesia) on options for generating Certified Emission Reductions (CERs) and voluntary units from a range of emission reduction projects.

Aggregation of forestry units for international sale
Developed a suite of carbon trading and aggregation agreements to enable Permanent Forests International to aggregate Assigned Amount Units (AAUs) arising under the Permanent Forests Sink Initiative (PFSI) and Verified Emission Reduction Units (VERs) held by famers and foresters with small forestry holdings. By aggregating the VERs and AAUs, Permanent Forests International is able to achieve bundle sizes of interest to international investors that would otherwise be unachievable for many farmers and foresters.

Carbon credits trading and futures contracts
Advised a global financial institution on the regulatory regime for carrying on the business of dealing in carbon credits and carbon credit derivatives in New Zealand. This involves consideration of the relevant securities markets legislation, as well as impending legislation which may affect the application of such legislation in relation to dealing in carbon credits and carbon credit derivatives.

Allocation of emissions units to emissions-intensive trade-exposed industry
Advised several large corporate/industrial clients on their rights and obligations in relation to the free allocation of New Zealand Units (NZUs) to Emissions-Intensive Trade-Exposed (EITE) entities under the New Zealand Emissions Trading Scheme.

Market-leading tender for the acquisition of NZUs
Advised one of New Zealand's largest electricity generators on New Zealand's first tender for the purchase of NZUs (backed by AAUs) from owners of forest land.

ISDA-based Emission Reduction Purchase Agreement
Advised an international investment bank on International Swaps and Derivatives Association, Inc. (ISDA) documentation and the bank's entry into one of the first New Zealand ISDA-based Emission Reduction Purchase Agreements for the purchase of CER units from TrustPower.

Carbon offset programmes
Advised an international airline on legal issues associated with the establishment of a carbon offset programme for its passengers and on the purchase of ERUs from a New Zealand Projects to Reduce Emissions project.

Polish electricity generator's purchase of New Zealand ERUs
Advised a Polish state electricity generator on the purchase of ERUs from a New Zealand wind farm.

Trade-exposed businesses
Advised trade-exposed businesses on securing amendments to the Climate Change (Emissions Trading and Renewable Preference) Bill, which established the New Zealand Emissions Trading Scheme, to enable them to obtain a free allocation of emission units as trade-exposed businesses.

Submissions to Parliament on Emissions Trading Bill
Advised a New Zealand electricity generator on its submissions to Parliament on the Emissions Trading Bill, its carbon trading strategy and template carbon trading documentation for domestic and international trading.

Australasian bank's securities over carbon credits
Advised an Australasian bank on taking security over carbon credits and over forest land subject to Permanent Forest Sink Initiative covenants or the New Zealand Emissions Trading Scheme.

Dealing in futures contracts for carbon credits
Advised an international investment bank on the regulatory regime for carrying on the business of dealing in carbon credits and carbon credit derivatives in New Zealand, and applying for authorisation to deal in futures contracts under the Securities Markets Act.

Chicago Climate Exchange
Advised on New Zealand's first voluntary carbon emission transaction on the exchange.