The following Environment practice note provides comprehensive and up to date legal information covering:
Increased emphasis on climate change and carbon emissions reduction is affecting corporate transactions. In addition to schemes such as the EU Emissions Trading Scheme (EU ETS), additional legislation means that an organisation may be required to participate in a number of carbon reduction and/or energy efficiency schemes, as well as have reporting obligations connected with energy and carbon usage eg:
the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) mandatory emissions trading scheme required qualifying organisations to purchase allowances for every tonne of carbon dioxide that they emit (note the CRC closes following the 2018/1019 compliance year—see Practice Note: CRC—key changes—The end of CRC). Following the end of the CRC scheme, the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, SI 2018/1155 bring in additional disclosure requirements for quoted companies and also introduce requirements for large unquoted companies and limited liability partnerships to disclose their annual energy use and greenhouse gas emissions, and related information—see Practice Note: Streamlined Energy and Carbon Reporting (SECR)—quoted companies, large unquoted companies and large limited liability partnerships
Climate Change Act 2008 requires annual emissions reports—see Practice Notes: Voluntary greenhouse gas reporting and Mandatory greenhouse gas reporting
the Energy Savings Opportunity Scheme (ESOS)—see: Energy Savings Opportunity Scheme (ESOS)—overview
Lawyers must consider whether the target company's activities are affected by climate change legislation.
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