Kiri

Dear Colleagues

I hope all is well on your end and that the year has started well for you.

I am writing in relation to the proposal on Carbon Markets that the Permanent Bureau has put forward in preparation for CGAP on 4-7 March 2025. The proposal can be found in Prel Doc No 6 (“Report: Private International Law Aspects of Voluntary Carbon Markets”), which is available at the following links:

• In English: https://assets.hcch.net/docs/291b5b6a-7f59-4176-b509-b8e108a074a1.pdf

• In French: https://assets.hcch.net/docs/9f86c226-2549-4cbb-8706-f3890c7a95fb.pdf

• In Spanish: https://assets.hcch.net/docs/041bc133-12a2-4a1e-95e2-ab0e1aa0c4d1.pdf

Prel Doc No 6 reports on the PB’s work over the past year in monitoring developments of the private international law (PIL) aspects of voluntary carbon markets, and in cooperating and coordinating with the secretariats of relevant international organisations on their projects in relation to voluntary carbon markets, as mandated by CGAP last year. Prel Doc No 6 also outlines a proposal for CGAP to consider the establishment of an Experts’ Group to study the PIL aspects of carbon markets.

One key deliverable of the proposed Experts’ Group follows on the request of the UNIDROIT WG on Verified Carbon Credits (VCCs) that the HCCH contribute to its consideration of an applicable law rule that UNIDROIT intends to include in the draft UNIDROIT Principles on VCCs. The proposal for the establishment of the Experts’ Group follows on the recommendations by five subject-matter experts, sitting in their individual capacities as experts for the PB, that PIL aspects of VCCs should be multilaterally consulted while keeping holistic considerations of other PIL issues in mind. The proposed mandate of the Experts’ Group is to study the possible inclusion of an applicable law provision in the draft UNIDROIT Principles on VCCs after considering, holistically, all relevant PIL issues as well as the different phases of the carbon credits lifecycle. If, after multilateral consultation, the proposed Experts’ Group agrees on and delivers a feasible applicable law provision, the provision would be transmitted to the UNIDROIT WG, allowing for cooperation and coordination with UNIDROIT on the inclusion of an applicable law provision in their draft Principles.

Annexed to Prel Doc No 6 is the Preliminary Report authored by the five subject-matter experts.

My team and I are available for a discussion on this document, the work of the PB over the last year, and the proposed work in the year to come. Also, if you would suggest or connect me with colleagues who you think would be interested in this topic, or who will be attending CGAP and may be interested in discussing the topic, my team and I would be delighted to reach out and consult with them.

If a discussion ahead of the CGAP meeting would be of interest, may I ask you please to indicate a couple of alternative timeslots in the next 2-3 weeks that would be convenient for you and/or your colleagues?

I look forward to hearing from you and perhaps to seeing you again soon at CGAP. Thank you very much.

With all best wishes

Geri