Preparing For Contract Disputes Over Environmental Credits

By David Baay, Garrett Gibson and Andy Kriha (July 6, 2021, 5:16 PM EDT) -- Growing environmental awareness by consumers and governments has led to the proliferation of carbon and environmental attribute markets. Businesses in virtually every industry now participate in government-mandated markets, voluntary markets or both.

Just recently, Washington state joined California and Oregon in enacting a low carbon fuel standard, which mandates the use of increasing amounts of clean fuels in vehicles to reduce greenhouse gas emissions. Other states are likely to follow suit.

The various markets serve different purposes for different industries. For example, the U.S. Environmental Protection Agency's Renewable Fuel Standard and state renewable energy certificate markets set standards for amounts of...

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