This session will focus on ISDA’s research reports on carbon derivatives, ESG, with a focus on commodities.

An overview of existing ISDA templates for environmental trading including weather, emissions etc. but also gas, power, coal and oil.

Standardization is a key driver for enhancing liquidity – but what are the issues with developing standard documentation for environmental products, sustainability linked derivatives (SLDs), etc.? This panel will discuss ISDA’s ongoing efforts to create standardized documentation, clauses and provisions for environmental products, SLDs, as well as things to consider when drafting ESG-related KPIs. The panel will also discuss potential regulatory and tax implications associated with trading SLDs.

Moderator: Natalie Everaert, General Counsel and Managing Director, Co-head of Asia-Pacific Legal ESG Group and Chair of ISDA’s Global Energy, Commodities & Developing Products Committee, Citibank, N.A.
Tamsin Rolls, Executive Director and Assistant General Counsel, J.P. Morgan
Victoria White, Senior Associate, Allen & Overy LLP
Ingrid York, Partner, White & Case LLP

ISDA has published the 2022 ISDA Verified Carbon Credit Transactions Definitions. The VCC Definitions are in the form of a standard definitional booklet for physically settled secondary market Verified Carbon Credit (VCC) transactions and are accompanied by template confirmations for VCC spot, forward and option transactions.

1. Renewable energy products
   1. US REC Annex
   2. VPPAs and other products
   3. EU GOs
2. Trading in carbon emissions products
   1. Emissions trading for global aviation/shipping carbon
   2. ETS in US states vs EU and UK ETS
   3. Future ETS in China and voluntary carbon trading
3. Renewable fuel products
   1. RINs
   2. LCFS
   3. Others