Energy & Infrastructure Insight by Shearman & Sterling

Energy transition is a pivotal global topic that has attracted widespread interest. In this latest edition, Shearman & Sterling provide a roadmap of the key European regulatory developments relevant to hydrogen in 2021. Hydrogen has clearly become central to the European Commission’s decarbonization agenda.

Carbon offset credits provide a credible method of lowering various sectors’ carbon footprints and achieving emissions reduction targets. They examine how carbon offset credits are issued for sale, and they review the various carbon offset projects that are available for credit purchasers.

On July 14, 2021, the European Commission published its proposal for a Carbon Border Adjustment Mechanism (CBAM), which will be phased in from 2023 and be fully operational in 2026. Shearman & Sterling describe how CBAM certificates will work, how they are designed to reduce carbon leakage and which sectors they will apply to. They also offer some insight into the expected avenues for appealing CBAM-related decisions.

Shearman & Sterling also look at the recent trend of courts within the EU—both at the EU and individual Member State levels—becoming increasingly assertive in adjudicating energy-related matters.  

In the United States, Shearman & Sterling examine how offshore wind presents a significant opportunity for local economic growth and job creation. They also consider the new bipartisan Senate infrastructure bill that emphasizes reauthorization, research, resilience and reliability. If passed, this bill will provide more than $1 trillion in improvements to the nation’s physical infrastructure.

In Asia, Shearman & Sterling consider the challenges of cross-border renewable independent power projects. They also look at the changes to foreign ownership restrictions in the Philippines and the impact on the energy sector.

Shearman & Sterling recently launched its Energy Innovation Hub, a digital resource for energy innovation developments, articles, events and news that highlights the Firm’s deep technical expertise and experience in the key technologies that are transforming the energy, industrial and transport landscapes. Access and register to the Energy Innovation Hub here.