Lawyer Monthly - February 2023

TRANSACTION INTERVIEW 91 Can you tell us about the roles HFW has played during this operation and the skills that yourself and your team have brought to the process? There is no existing organisation in the world today whose objective for being set up is similar to that of the CAD Trust. As such, the main role HFW played at the early stage of this mandate was to guide the sponsors on the most suitable governance and corporate organisational framework for the CAD Trust. This involved recognising the quasi-public/ private nature of the sponsors, as well as the various participant types who will be involved in the future activities of the CAD Trust and creating a balanced arrangement that accommodates the dynamics of the multitudes of interests arising from that. HFW coordinated the incorporation process for the CAD Trust in Singapore together with SLB. Why is the creation of the CAD Trust significant for governments and multinational corporations? The establishment of the CAD Trust is expected to be a critical enabling tool towards the achievement of net-zero climate goals as it will assist countries in implementing Article 6 of the Paris Agreement. This requires countries to track and report on the use of international credits through a registry system, and the CAD Trust system will assist in promoting high-integrity systems and digital linkages. The future of carbon markets involves establishing trust between the Paris Agreement markets and voluntary carbon programs. By helping reduce the risk of double counting, the CAD Trust will be an important tool towards building that trust. Do you expect HFW to advise on similar international projects as we move into 2023? HFW and SLB will continue to support the efforts of the CAD Trust as it starts to implement its objectives in 2023. The carbon market, in its second iteration, remains nascent with many new products, infrastructure tools and markets frameworks yet to be developed. The work on these things will continue in 2023 and HFW will no doubt continue to support its clients with such initiatives. Peter Zaman HFW The future of carbon markets involves establishing trust between the Paris Agreement markets and voluntary carbon programs.

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