Climate Change & Carbon Market

TozziniFreire Advogados’ Climate Change & Carbon Finance practice has been active since 2001. TozziniFreire was one of the first law firms in Brazil to form a practice group devoted to assisting clients in dealing with Climate Change issues. The current Climate Change & Carbon Finance practice area represents a natural extension of the firm’s long-standing and extensive work on environmental law, agribusiness, timberland investments, energy regulatory law and policy, administrative law, capital markets, and banking regulation. 

As a result of the Paris Agreement becoming effective, various countries and companies will be required to start meeting requirements to reduce their greenhouse gas emissions, potentializing the rebirth of the carbon markets. Accordingly, the demand for projects aiming at reducing such emissions has definitely increased. Given this scenario, Brazil may position itself as a natural seller of carbon credits and attract investments in projects that contribute to the reduction of greenhouse gas emissions.

TozziniFreire Advogados is a local leader in key aspects of either Kyoto-based or voluntary markets emissions project implementation. To address the ever-expanding commercial ramifications of global climate change policy and regulation, the firm’s current approach in this area represents a synthesis of expertise drawn from the following practice areas:

• Timberland Investment;
• Energy;
• Project Finance;
• Environmental Law;
• Administrative Law (related to Regulatory Law).

The structuring of greenhouse gases emissions reduction projects requires specific knowledge and ability to navigate in these areas, whilst demanding from the experts great contractual flexibility, as several matters of interest to the parties are not yet defined in specific regulations. Besides, risk mitigation regarding the generation of carbon credits will result in a potential increase in their market value.