A Delaware Superior Court ruled that parties to litigation regarding a failed carbon credit investment venture were bound by an arbitration clause. The court therefore dismissed the complaint filed by an investor in a pooled fund to generate carbon credits against the operators of the pool. The court concluded that the defendants were not bound by the forum selection clause in a Securities Purchase Agreement to which their parent company was a party and that the arbitration clause in a separate Acquisition and Management Agreement (AMA) was controlling. The court further concluded that the parties intended for the arbitrator to determine issues of substantive arbitrability for disputes arising out of the AMA.

Lawsuit brought by an investor in a pooled fund to generate carbon credits seeking to vindicate its termination of its agreement with the operators of the fund after it failed to generate carbon credits.

Anew Ventures II, LLC v. Terra Global Investment Management, LLC

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Delaware Court Concluded that Carbon Credit Investment Dispute Was Subject to Arbitration

Filed

Lawsuit brought by an investor in a pooled fund to generate carbon credits seeking to vindicate its termination of its agreement with the operators of the fund after it failed to generate carbon credits. 

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Actions or measures to adapt terrestrial systems to climate change.

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Actions to reduce emissions in energy generation and supply.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector involves the wholesale and retail selling of goods.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Delaware Court Concluded that Carbon Credit Investment Dispute Was Subject to Arbitration

Policy instrument

Risk

Renewable energy

Greenhouse gas

Economic sector

Adaptation/resilience

Finance