Paul Greening quoted on the LSE’s voluntary carbon market model and the SGX’s CIX

Akin Gump Singapore Energy partner Paul Greening spoke to Singapore’s The Business Times and was quoted in the article “London’s voluntary carbon market model could work for Singapore: CIX product head”.

The article looks at the London Stock Exchange (LSE) voluntary carbon market (VCM) designation and the potential for adoption of the LSE model by the Singapore Exchange (SGX). The LSE VCM designation will be applied to funds or operating companies that are admitted to the LSE’s main market or AIM and which are intent on investing into climate change mitigation projects that are expected to yield carbon credits. The LSE VCM creates an interesting option for investors to receive returns by way of cash and/or carbon credit certificates (distribution in specie). The article concludes that, as a financial hub, it is “possible or probable” to adopt a similar version to the LSE VCM designation in Singapore.

Paul spoke of the opportunity for the LSE and SGX to cooperate on standardisation. He noted that the key issue (when referring to credit sales) is whether the issuer can provide enough certainly to investors upfront as the type of credit they receive as distribution in-specie. Paul said, “without all carbon certificates being equal, the value of the distribution will vary depending on the underlying asset quality, geography, timeframe and certification regime, and this may not be attractive to investors”.

Paul Greening is a leading energy lawyer with extensive experience in energy-related cross-border M&A matters, gained in Asia and across the globe. Paul is listed as a leading and recommended lawyer in The Legal 500 Asia-Pacific, Singapore, Energy: Foreign Firms, 2022, The Legal 500 Asia-Pacific, Singapore, Projects: Foreign Firms, 2022, Who’s Who Legal: Global Leader, Energy - Oil & Gas 2022, Who’s Who Legal: Global Leader, Energy - Power/Electricity 2022 and Who’s Who Legal: National Leader, Southeast Asia - Energy 2022.