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Energy & Climate Change

The energy sector is in transition and requires cross-sectoral expertise. While Norway remains a reliable producer of oil and gas also the Norwegian renewables industry represents significant value creation and employs a great number of people. The hydropower sector represents the core of the business, but new sectors and businesses are emerging. This includes on- and offshore wind power, solar and bio energy. Realization of the world's and Norway's climate ambitions necessitates a large-scale electrification of the society. This will require significant investments in grid infrastructure, charging solutions and development and commercialization of smart solutions to ensure flexibility and robustness in the power system.

CMS Kluge has a strong team of lawyers, including specialists within both renewables and conventional energy sources, and can assist all types of businesses within this sector. Our core competencies include energy law as well as competition law, EEA law and state aid, construction law, company law/M&A, banking & finance, tax and dispute resolution. 

CMS Kluge’s energy and climate change practice provides the full range of services, including assistance on

  • Regulatory framework
  • Licensing/concession matters including license transactions
  • Commercial agreements, including third party access agreements
  • Development projects including procurement
  • Oil & gas sale and purchase agreements; PPAs 
  • Infrastructure & electrification projects
  • Project finance
  • M&A
  • Petroleum taxation
  • Dispute resolution
Cli­mate Risk re­port
At COP26 in­sti­tu­tion after in­sti­tu­tion came for­ward to make stronger com­mit­ments to what is now broadly seen in most coun­tries as a com­mon goal: to re­duce glob­al car­bon di­ox­ide emis­sions. In par­tic­u­lar, the private sec­tor stepped up to the plate. For ex­ample, the Glas­gow Fin­an­cial Al­li­ance for Net Zero pos­ited a po­ten­tial USD 130tn of private cap­it­al to ac­cel­er­ate the green trans­ition. COP26 also es­cal­ated the role of cli­mate dis­clos­ures in achiev­ing net zero. To achieve glob­al com­par­ab­il­ity, the In­ter­na­tion­alSus­tain­ab­il­ity Stand­ards Board (ISSB) is to de­liv­er a glob­al baseline that gives in­vestors in­form­a­tion about the cli­mate and sus­tain­ab­il­ity risks in re­la­tion to com­pan­ies they (may) in­vest in. Fur­ther, the UK in­tro­duced re­quire­ments for all lis­ted com­pan­ies to pro­duce net-zero trans­ition plans by 2023. These are seen as drivers for achiev­ing cli­mate-pos­it­ive in­vest­ing.In­ter­na­tion­al com­mer­cial law­yers have a cru­cial role to play in nav­ig­at­ing and im­ple­ment­ing the frame­works that emerge from COP26. Be­ing guard­i­ans of the rule of law and fa­cil­it­at­ors of busi­ness and trade, law­yers will be at the centre of dis­cus­sions on what our cli­ents are re­quired to do, and also on what they should do in light of wider so­ci­et­al and repu­ta­tion­al con­sid­er­a­tions. It is in our cli­ents’ in­terests that we guide them to­ward out­comes in line with wider so­ci­et­al am­bi­tions. To do oth­er­wise would, among oth­er things, risk pla­cing them at a com­pet­it­ive dis­ad­vant­age as the world pivots to­ward a clear­er cli­mate mit­ig­a­tion agenda. Cli­mate Risk is a broad term and cov­ers a mul­ti­tude of con­cepts. This re­port fo­cuses on three leg­al risks. First, of fin­an­cial in­sti­tu­tions hold­ing cor­por­ates to ac­count over per­ceived cli­mate risks. Second, the risk to cor­por­ates on what they do and say about the im­pact on their busi­ness from (or from their busi­ness on) cli­mate change. Fi­nally, risk of lit­ig­a­tion against cor­por­ates re­lat­ing to cli­mate change.As law­yers, what we see is broadly a great de­sire among our cli­ents to be part of the solu­tion on cli­mate change. Al­most all ma­jor cor­por­ate cli­ents that we speak to wish to take pos­it­ive steps that are in line with the de­sire for cli­mate ac­tion, and also to cap­it­al­ise on the op­por­tun­it­ies presen­ted as we trans­ition to a net zero eco­nomy. We find that, among the in­vest­ment com­munity, vast cap­it­al is ready and avail­able to be de­ployed on in­fra­struc­ture and oth­er pro­jects that will push the agenda for­ward. The ques­tion is wheth­er there is suf­fi­cient clar­ity on the agenda, the rules and the risks in­volved.As this re­port shows, a key driver of Cli­mate Risk for cor­por­ates re­volves around in­form­a­tion. Both quan­ti­fi­able in­form­a­tion about the po­ten­tial dir­ect im­pacts of cli­mate change on par­tic­u­lar sec­tors and busi­nesses. And also con­sist­ent, com­par­able and re­li­able in­form­a­tion about the com­pan­ies them­selves. Com­pan­ies are pro­du­cing re­ports that are de­lu­ging in­vestors on how they are meas­ur­ing and man­aging their im­pact on and from cli­mate change. However, there is some dis­tance to go be­fore in­vestors can com­pare the in­form­a­tion across the eco­nomy to make in­formed de­cisions. Or­gan­isa­tions such as Baringa, who have kindly con­trib­uted to this re­port, sup­port the same cli­ents from a par­al­lel per­spect­ive. They help in­vestors and cor­por­ates to as­sess cli­mate risk ex­pos­ure by us­ing Baringa’s Cli­mate Change Scen­ario Mod­el­ling. Tools such as these are in­valu­able for mak­ing the best de­cisions from the in­form­a­tion avail­able on risks to com­pan­ies and the cred­ib­il­ity of their ad­apt­a­tion and trans­ition plans.On cli­mate lit­ig­a­tion, this is a dir­ect and grow­ing risk to cor­por­ates who fall un­der the spot­light of a vari­ety of po­ten­tial claims against an in­creas­ing num­ber of po­ten­tial claimants. It is prudent to act­ively man­age this risk through dis­pute avoid­ance strategies, hav­ing plans in place to deal quickly and ef­fect­ively with the situ­ation where a claim is brought, and un­der­stand­ing the key fea­tures that are typ­ic­ally at play in such lit­ig­a­tion.Cor­por­ates are well aware that cli­mate risks are an in­teg­ral fea­ture of their busi­ness plan­ning. What some oc­ca­sion­ally cri­ti­cise is the lack of long term cer­tainty. Mak­ing knee jerk de­cisions based on woolly polit­ic­al sen­ti­ments that could change to­mor­row rarely makes good busi­ness sense. Clear­er long term policy state­ments from gov­ern­ments and inter-gov­ern­ment­al in­sti­tu­tions can help on this, as well as clear­er policies on how gov­ern­ments see the shape of the fu­ture zero car­bon eco­nomy, and the path­ways to it. Quite apart from the out­comes of COP26, with the private sec­tor com­mit­ting en masse to the cli­mate agenda and the abil­ity to scru­tin­ise the private sec­tor’s re­sponse through cli­mate dis­clos­ures, net zero plans and oth­er ac­tions they take, we an­ti­cip­ate that the is­sue of Cli­mate Risk will con­tin­ue to rise up board­room agen­das.


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On 28 Septem­ber, the Nor­we­gi­an gov­ern­ment pub­lished a pro­pos­al to in­tro­duce a spe­cial tax­a­tion re­gime on pro­duc­tion of (sal­mon and trout) sea farm­ing, as well as on­shore wind farms. It is also pro­posed...
CMS Next
What’s next? In a world of ever-ac­cel­er­at­ing change, stay­ing ahead of the curve and know­ing what’s next for your busi­ness or sec­tor is es­sen­tial.At CMS, we see ourselves not only as your leg­al ad­visers but also as your busi­ness part­ners. We work to­geth­er with you to not only re­solve cur­rent is­sues but to an­ti­cip­ate fu­ture chal­lenges and in­nov­ate to meet them.With our latest pub­lic­a­tion, CMS Next, our ex­perts will reg­u­larly of­fer you in­sights in­to and fresh per­spect­ives on a range of is­sues that busi­nesses have to deal with – from ESG agen­das to re­struc­tur­ing after the pan­dem­ic or fa­cing the di­git­al trans­form­a­tion. We will also share with you more about the work that we are do­ing for our cli­ents, help­ing them in­nov­ate, grow and mit­ig­ate risk.To be able to provide you with the best sup­port, we im­merse ourselves in your world to un­der­stand your leg­al needs and chal­lenges. However, it is equally im­port­ant that you know who we are and how we can work with you. So, we in­vite you to meet our ex­perts and catch a glimpse of what is hap­pen­ing in­side CMS.En­joy read­ing this pub­lic­a­tion, which we will up­date reg­u­larly with new con­tent.CMS Ex­ec­ut­ive Team
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