Energy Finance

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To find out more about other related services you can visit the Energy & Climate Change expertise section.

Our recent experience related to energy finance includes advising:

  • Eni, together with EGAS and EGPC and Naturgy S A who own the (at the time non-operational) Damietta LNG facility in Egypt on the terms of multiple linked M&A, finance and commercial transactions which when completed will see the ownership and financing of Damietta (together with the associated businesses) restructured, the commercial arrangements re based and Damietta resuming operations and LNG exports.  
  • Zenobe, the leading UK battery developer, on the full project financing of its 100MW Merseyside battery storage project.
  • Crédit Agricole (as agent, security agent and account bank) and a consortium of lenders made up of Santander, NordLB, UniCredit, Rabobank and SMBC on the EUR 310m construction financing of an onshore wind farm portfolio in Sweden and Norway with a total installed capacity of 170 MW.
  • A consortium of banks, led by BNP Paribas and HSBC, on a US$650m loan (together with an accordion facility of US$450m) to Ratio Oil Exploration, one of Israel’s leading oil & gas companies, to fund the next stage of the development of the giant Leviathan offshore gas field in Israel.
  • GE Capital in relation to the Bridge Power LPG to CCGT power project, Ghana.
  • Commerzbank AG in respect of their financing of UK ground mounted solar farms.
  • ENGIE, OMV, Shell, Uniper and Wintershall in connection with the EUR 9.5bn project financing of the Nord Stream 2 pipeline for Nord Stream 2 AG, a 100% subsidiary of Gazprom.

To find out more about other related services you can visit the Energy & Climate Change expertise section

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07/12/2023
COP28: how the law can unite, act and deliver the UN SDGs
The law, and the work of lawyers, should enable countries, communities and companies to deliver the changes needed to achieve the UN SDGs and the Paris Agreement. As COP28 urges us to unite, act and deliver, Advocates for International Development (A
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23/05/2024
CMS advises on landmark Nordic renewables portfolio project financing
International law firm CMS has advised the creditors to Renewable Power Capital (RPC) on the closing of long-term senior facilities, totalling €555m, relating to RPC’s 553MW onshore wind portfolio...
15/03/2024
CMS advises on UK BESS financing
International law firm CMS has advised Harmony Energy Income Trust plc (HEIT), which invests in battery energy storage systems (BESS) in Great Britain, in relation to the refinancing of its existing debt...
13/12/2023
Solutions for the voluntary carbon market
Unlocking finance has been a key theme of the COP28 climate summit. Banks, regulators and top officials at COP28 have thrown their weight behind efforts to revive the global trade in voluntary carbon credits which is plagued by criticisms over lack of transparency and inadequate regulation.
13/12/2023
Innovation, regulation and investment needed for sustainable transport...
The CMS Urbanisation and Transport Roundtable, held during COP28, brought together a host of infrastructure businesses to reflect on the commitments and agreements that have been made.
08/12/2023
Key takeaways from Energy Day at COP28
As a young professional in the legal field, attending COP28's Energy Day was an eye-opening experience that provided valuable insights into the future of environmental policies and their potential impact. Day 6 of COP28 showcased a collective determination to address the pressing challenges of our time. The discussions emphasised the urgency of transitioning to sustainable energy sources, with a focus on innovation, collaboration and policy frameworks. Supply chain planning, streamlining approvals through a clear permitting process and advocating for mandatory carbon pricing were some of the other key points discussed in the various panel sessions we attended. Another noteworthy aspect was the emphasis on international co-operation and the role of legal frameworks in facilitating cross-border partnerships. Governments were urged to think strategically beyond the present, emphasising long-term planning for renewable energy expansion.  COP28 Key Takeaway  The key takeaway for me was not just the global agreements discussed but also amplifying the voices of those on the front lines – farmers, coal workers, the youth, indigenous people and others. What set this COP apart was its focus on showcasing these voices, by, for instance, dedicating a full day to discuss the impact of climate change on health. These voices are essential in translating agreements into on-the-ground success and bridging this gap between policy decisions and the real life experiences of those directly affected by climate change is our collective responsibility, ensuring the protection of our planet for present and future generations. The Impact on Legal Practice The outcome of COP28 may lead to more stringent regulations and compliance requirements, presenting both challenges and opportunities. Legal practitioners will play a pivotal role in navigating these complexities, offering counsel to businesses and other organisations seeking to align their operations with emerging environmental standards, one way of doing this would be through using contracts as a mechanism to de-risk. As we move forward post-COP28, the legal community's commitment to guiding clients through these evolving landscapes will be instrumental in ensuring progress in the renewable energy transition. In conclusion, COP28 has been a catalyst for reflection and action. It is an exciting time to be in the legal field, with the potential to be at the forefront of shaping legal frameworks that promote a more sustainable future.
30/11/2023
Views from the Energy Leaders’ Summit
Wednesday 6 December saw CMS host the Energy Leaders’ Summit on behalf of the Global Success Partnership at CMS Dubai. The event welcomed Edward Hobart, British Ambassador to the UAE, and Andrew Bowie MP, UK Minister for Nuclear and Net Zero, who shared their perspectives of the UK’s role as a global leader in climate action and energy transition, and the opportunities for collaboration with the UAE and other countries in the region. The panel discussion covered a wide range of topics on the various aspects of the energy transition - the role of innovation, finance, policy, and partnerships in achieving net zero emissions, and the challenges and opportunities for industrial decarbonisation and reskilling.  Thank you to the panellists:Munir Hassan, Head of Energy & Climate Change, CMSAnnika Ramsköld, Chief Sustainability Officer, VattenfallAngela Churie Kallhauge, Executive Vice President and Head of the COP28 Delegation, Environmental Defence FundJan Spin, President of Americas, Blue Green Water TechnologiesAnna Hancock, Executive Director, Pollination Group, AustraliaLeon Kamhi, Executive Director, Head of Responsibility, Federated Hermes Limited A huge step forward in the reduction of methane The Global Methane Pledge made at COP28 has been joined by over 100 countries and aims to accelerate the implementation of existing and new measures to reduce methane emissions, such as capturing and using methane from landfills and oil and gas operations, improving waste management, and promoting low-emission agriculture. The World Bank is set to roll out a minimum of 15 country-led programs within the next 18 months to slash up to 10 million tons of methane (over investment lifespans). So, lots of positive messages about reducing methane. The sense on the panel was that it was a huge step forward that methane was discussed to such an extent and the commitment that some of the largest oil companies have made to reduce methane could be a game changer. The International Energy Agency (IEA) and the Environmental Defense Fund (EDF) have an important role in monitoring and verifying the methane reductions using satellite data and we heard about the need for more funding and innovation to support methane abatement in low- and middle-income countries, especially in the oil and gas sector.  Reskilling is a huge opportunity  The panel discussed the social and economic impacts of the energy transition, and the need for a just and inclusive approach that considers the needs and aspirations of the citizens and the workers. We heard about the importance of reskilling and upskilling the workforce, sharing best practices and lessons learned from different countries and regions. Where the infrastructure can be easily transformed to support clean energy, this reskilling presents an opportunity to both businesses and local communities. However, panellists reflected that this was not always possible, so some communities may struggle to thrive if their current livelihoods cannot be transitioned to clean energy. The role of investors and financial institutions There was considerable discussion about the role of investors and financial institutions in supporting the transition, and the need for consistent and credible disclosure and reporting stand­ards. There are challenges and opportunities for creating new revenue streams and business models, and the role of carbon markets and social bonds in financing the transition. For the investment infrastructure to be created so that investors can support governments in delivering their programmes, it needs to be easier for private investment to entertain the risk. Blue Green Water Technologies remove harmful alga blooms from lakes and oceans. These projects are often financed by companies using carbon credits and this source of funding has enabled local communities to benefit from cleaned bodies of water. Biodiversity has dramatically increased, as has the value of land. Creative funding solutions can benefit many different stakeholders by enabling projects such as these. Climate risk is an accelerating risk, and this should be considered by financial institutions. As they calculate the value of climate risk and its impact on their capital allocation, remuneration and expenses, the valuations must adjust. The view on disclosures and standards was that their have a role, but any investment should lead to a change in behaviour, not just to be disclosed as part of disclosure requirements. Making disclosures is a huge investment for a business and so the sense was that businesses should avoid measuring in a certain way purely for disclosures instead of really delivering change and solutions. The role of governments Finally, we heard about the role of governments in facilitating and enabling the transition, and the need for collaboration and cooperation at all levels. We learned about the importance of setting clear and ambitious targets and policies and aligning them with the global goals and commitments. We also heard about the importance of engaging and empowering the stakeholders, especially the non-state actors, and creating trust and confidence in the transition. COP28 has a role as a platform for showcasing solutions and forging partnerships. The Leadership Group for Industry Transition is one example of how governments can be brought together with companies and civil society to support and accelerate the transition to net zero emissions in industry and create new markets and jobs. Communities will make the difference The discussion closed with some reflections on the importance of different communities in making the energy transition happen. Communities of all types, such as those who attended the Energy Leaders’ Summit, will come together to use the technology available to translate the deals and agreements into action. We need government support to remove the brakes, and we need actors of all types to come together. We need people to question, to demand more and to change behaviour.  
07/11/2023
Funding + reskilling + data + consumer engagement = energy transition...
 
07/11/2023
COP28 - Climate finance and the launch of Climate Investment Funds (CIF)...
Climate finance took centre stage on the fourth day of the COP28 climate summit in Dubai. Building on the obligations of The Paris Agreement, banks, regulators and top officials at the COP28 climate summate committed to progressing the mobilization of climate finance from a variety of sources, including public, private and alternative sources of financing.  
06/11/2023
“Debt-for-nature” swaps: a huge potential boost for the debt capital markets?
 
06/11/2023
Adaptation finance: more clarity for the financing and development of low...
 
01/11/2023
COP28: how the law can unite and act to deliver the UN SDGs
Thursday 7 December saw a panel event to discuss COP28: how the law can unite and act to deliver the UN SDGs, hosted by Advocates for International Development and supported by Clifford Chance, CMS, Kirkland & Ellis and Linklaters.
01/11/2023
COP28
CMS contributed to the conversations at, and around, COP28 by hosting a series of events to collaborate, debate and look forward. Here, our experts publish soundbites and commentary to share their perspectives on the impacts of the announcements and agreements.