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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
24/10/2023
CMS European Energy Sector M&A and Investment Outlook 2024
As the world economy increasingly embraces the push towards decarbonisation, Europe has actively sought to place itself at the vanguard of the discussion on energy trans­ition. Op­por­tun­it­ies to deploy capital abound as power sources switch further towards offshore and onshore wind, solar, heat, hydrogen, battery storage, new networks, carbon capture, and industrial decarbonisation. The latter brings an interface with other sectors such as technology companies (with power hungry data centres a particular focus), real estate, low carbon transport and decarbonisation of industrial processes such as cement, glass and steel production. As much as it is difficult, complex and highly political, the energy transition is also a huge business opportunity. To reach net zero by 2050, the International Energy Agency (IEA) estimates that global investment in clean energy alone will need to increase from the USD390bn in the first half of 2023, to USD 1.3tn in 2030. Many commentators worried that Russia’s invasion of Ukraine would put back the transition and shift Europe back towards fossil fuels. While it appears to have resulted in a renewed political focus on energy security it has also laid bare the financial and political consequences of relying on oil & gas imports, giving further impetus to renewables as a secure form of energy. Europe has also sought to be a leading light on the concept of “reaching net zero”, with the European Union (EU) having set out its ambition, back in 2019, to become the world’s first major economic bloc to be climate-neutral by 2050. This has added momentum to energy investment and M&A over recent years – 2021 and 2022 saw the second and third highest annual aggregate values of Western European M&A in the sector on record, at USD 59.8bn and USD 53.7bn, respectively, bested only by the anomalously high total of USD 89.4bn logged in 2018. Energy M&A in the region has been more subdued in 2023, but our survey demonstrates that energy executives are gearing up for a more active dealmaking period, with most expecting more opportunities and anticipating increased levels of investment in the year ahead. Capital looks set to continue to flow primarily to renewable energy projects and related assets, with solar and batteries topping the list of attractive subsectors among our respondents. Consistent with this, South West Europe takes pole position as the most promising region for investment opportunities. But there are thorns among the roses. Our respondents are cognizant of the challenges in the energy market, with supply-chain volatility and commodity price increases emerging as a prominent concern. This is unsurprising after a period of dislocation following the pandemic and amid a time of rising global demand for renewable products and commodities. Persistent inflation and elevated interest rates, combined with an uncertain macroeconomic outlook, are raising investors’ concerns, with financing risk (including the increased cost of financing) also coming to the fore for respondents. Overall, while some sense a recent softening of the market due to these fundamentals, our survey paints a picture of steadily improving investor sentiment in Europe’s energy sector, laying the foundations for a busier period ahead for M&A activity.
27/10/2021
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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17/10/2023
The Renewable Energy Law Review
The Renewable Energy Law Review CMS Kluge, represented by Camilla Grytten, Dag Thomas Hansson, Beate Kathrine Berge, Maria Hurlen and Rebekka Asbjørnsen, have contributed to this year's edition of the...
09/08/2023
Electrification of the Hammerfest LNG plant
With this week’s announcement of the approval of Snøhvit Future, an electrification project at Europe’s first LNG plant, the Norwegian government facilitates for extended LNG production towards 2050...
29/03/2023
Offshore Wind in Norway | First Round Announced
Live-streaming from an electrical, carbon fibre catamaran, Norwegian Prime Minister Jonas Gahr Støre and Minister of Petroleum & Energy Terje Aasland announced today the long awaited first tender process...
28/09/2022
The Norwegian government proposes special taxation regime for sea farming...
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...
01/06/2022
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
09/03/2022
CMS Kluge has acted as lead counsel for P/F Bakkafrost
CMS Kluge has acted as lead counsel for P/F Bakkafrost in connection with the refinancing of P/F Bakkafrost’s existing bank facilities with a EUR 700 million five-year secured sustainability linked...
10/02/2022
Norwegian offshore wind – what comes next?
The government’s internal disagreement over hybrid cables aside, Norway will later this year launch its first tender for bottom-fixed offshore wind turbines in the North Sea. In a speech delivered...
25/11/2021
Taking stock of hydrogen developments 2020-2021
With developments in the low carbon hydrogen space proliferating and governments creating new policies to regulate these developments, join CMS experts to explore the key changes over the last 12 months...
24/11/2021
Hydrogen law, regulations & strategy in Norway
1. Current state of hydrogen projects in Norway In Norway, 225,000 tonnes of hydrogen are currently produced from natural gas for use in industrial processes. The production of hydrogen from natural gas...
23/04/2021
Kluge top-ranked in several categories in the Legal 500
Legal 500 for 2021 has been launched, and we are proud to announce that Kluge once again are recognized as one of Norway's leading law firms. We are top ranked in Construction and Public procurement...
16/04/2020
Top rankings for Kluge in this year’s Legal 500
The Legal 500 guide for 2020 is published and Kluge is once again recognized as a leading law firm in Norway. Kluge is ranked as a tier 1 firm within Construction and Public procurement. We also confirm...