Carbon Offsetting meaning

Marks and Spencer plc v Secretary of State for Levelling Up, Housing and Communities and others [2024] EWHC 452 (Admin) What did the court decide? This legal challenge by M&S concerned the Secretary of State’s refusal of permission to demolish its Oxford Street flagship and replace it with a new nine storey mixed office and retail scheme. M&S succeeded on five of the six grounds. The High Court found the decision unlawful because the Secretary of State misread the NPPF, treating it as if it imposed a strong presumption for re‑using the existing building when no such presumption exists. He also failed to give adequate reasons for departing from the inspector’s conclusions. The judgment also confirms that offsetting requirements in the London Plan relate to operational carbon, not embodied carbon. This case offers increased clarity for the planning system for everyone (whether one is pursuing a retrofit or a redevelopment) as it reinforces the importance of our plan‑based system. The effect of the judgment is that the application...

In this issue: Air emissions and climate change Energy efficiency and buildings Energy for environmental lawyers Environmental assessment Environmental disputes and proceedings Environmental enforcement and prosecutions Environmental information ESG and sustainability Hazardous substances and chemicals Marine Nature, biodiversity and habitat conservation Waste Waste producer responsibility regimes Water, flooding and drainage Daily and weekly news alerts New and updated content Trackers Useful information Air emissions and climate change Carbon Budget Plan judicial review succeeds (R (Friends of the Earth and others) v Secretary of State for Energy Security & Net Zero) This claim concerns the government’s obligations under the Climate Change Act 2008 (CCA 2008). Central to it is the Secretary of State’s duty to formulate and lay before Parliament proposals and policies which, in his judgement, ‘will enable the carbon budgets’ to be met (CCA 2008, s 13(1)). The judicial review challenged the Carbon Budget Delivery...

This Practice Note outlines green loans and the principal considerations when preparing a green loan agreement. It centres on the Green Loan Principles (GLP) issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA)... Clarifies the meaning of a green loan Introduces the GLP and the accompanying GLP guidance Sets out the four core components of a green loan under the GLP and summarises the related guidance Condenses GLP and GLP guidance on what qualifies as a green loan, on reviews, and on greenwashing risks Provides sources for precedent wording, including the Loan Market Association draft provisions, plus drafting pointers What is meant by a green loan? Under the GLP, green loans encompass any form of loan instrument and/or contingent facility (for example, bonding lines, guarantee lines or letters of credit) where the proceeds, or an equivalent amount, are applied solely to fund, re-finance or guarantee, in...

EU ETS content—overview This Practice Note summarises the principal elements of Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003, which established the greenhouse gas emission allowance trading scheme known as the EU Emissions Trading System (EU ETS) (formerly the EU emissions trading scheme), as it pertains to the aviation sector. It explains the application of the EU ETS to aviation activities, highlighting significant exclusions and derogations, and outlines the main responsibilities of aircraft operators, including monitoring, reporting and verification, alongside the mechanisms for auctioning, free allocation, and surrender of allowances. It also describes how the EU ETS aligns with the International Civil Aviation Organisation (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). For further practical guidance on different aspects of the EU emissions trading system, refer to these Practice Notes: EU Emissions Trading System (ETS)—outline EU Emissions Trading System (ETS) Phase IV—Directive 2003/87/EC EU Emissions Trading System (ETS) for maritime transport EU Emissions Trading System...

Non-compliance with emissions trading schemes may lead to civil penalties, operational prohibitions or the detention of aircraft. Accordingly, financiers need a clear grasp of the duties imposed on aircraft operators (and, in some cases, owners) by the applicable schemes and of the accompanying enforcement tools, so that these risks are properly catered for in their finance documentation. This Practice Note sets out the principal components of the leading emissions trading regimes relevant to aviation finance deals. It addresses: the EU emissions trading system (EU ETS) the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) (and its integration into the EU ETS) the UK emissions trading system (UK ETS) Introduction to the key emissions trading schemes The EU ETS, CORSIA and the integration of CORSIA into the EU ETS The relationship between these regimes, including how CORSIA is integrated into the EU ETS, is outlined to support aviation finance transactions and risk allocation in documentation... The EU ETS ...

Precedent Target product carbon footprint clause—schedule for consumer goods contracts Use this schedule within a manufacturing contract for the supply of consumer goods to oblige the parties to adopt a target product carbon footprint budget—one that diminishes over time—for each product manufactured and supplied pursuant to the contract. The clause is consistent with the Paris Agreement objectives, the Race to Zero criteria, and the Oxford Principles for Net Zero Aligned Carbon Offsetting as stated. This sustainability wording was created by The Chancery Lane Project (TCLP) as ‘Ming’s clause’ and is accessible via TCLP’s website below, where the linked text appears for reference. For comprehensive and relevant guidance on target product carbon footprint budgets, please consult the TCLP clause for direction as needed. TCLP is the codename for a focused, collaborative initiative of lawyers from around the world to craft new contracts and model legislation to tackle climate change. For further details, visit: chancerylaneproject.org. Lexis+® is proud to support the work of TCLP...