Scope of Environmental Law Expanding, Firms Staffing Up
There is growing demand for legal advice on environmental law from clients such as developers, venture capitalists, and even state and local agencies seeking good environmental counsel to avoid costly litigation, according to an Environmental Law Forum at the University of Virginia. One member of the panel discussion, Bill Sinclair, an Attorney with Beveridge & Diamond says, “It’s no longer just about ground, air, and water. The scope of environmental law is broad, encompassing natural resource issues, pollution, contamination and land-use litigation.” Moreover, the forum revealed that “green investor activism” and pending carbon legislation are forcing companies to pay closer attention to environmental concerns.
Law firms that specialize in the legal implications related to climate change, including carbon-trading and litigation over greenhouse gas emissions, are expecting new business, according to Law.com. A growing number of law firms are advertising experience in climate change issues and some have already begun expanding this practice area. Executive search firm, A.E. Feldman, says that legal jobs are opening up. Environmental attorneys and energy attorneys are poised to benefit from the trend.
Corporate executives and consumers express equal concern about climate change and other environmental issues and a staggering 80% of global executives expect climate change regulations within five years, according to recent research compiled by McKinsey. Amid these developments, the Environmental Law Institute (ELI) concludes that understanding the markets and regulations surrounding climate change and carbon trading is a critical skill for attorneys specializing in environmental, regulatory, administrative, corporate, and securities law.
“The 1970s signaled the first wave of modern environmental law with the passage of the Clean Air Act and other legislation designed to tackle the environmental problem of the day… Today, however, issues related to climate change, carbon trading, water scarcity, and bulging landfills have given rise to rapidly expanding environmental law offices at private firms, NGOs, and government agencies at all levels,” according to UVA Law.
New Environmental Legislation to Fuel Demand for Attorneys
The expected wave of new environmental legislation, particularly carbon legislation, will fuel demand for additional environmental lawyers from new boutique firms to new legal offices in government agencies.
Right now there is growing interest in the field of carbon regulation as Congress moves closer to mandating some sort of carbon reduction program. The U.S. will be home to a $1 trillion U.S. dollar carbon emission market by 2020 if federal and state policymakers continue pursuing a comprehensive “cap-and-trade” program that is confined to domestic trading only. That’s among the findings of new research conducted by New Carbon Finance - a division of New Energy Finance - as reported by Environmental Leader.
Under a “cap-and-trade” system, the federal government would ration the amount of carbon dioxide and other greenhouse gases that businesses emit by issuing permits. A business wanting to emit more than it is allowed may buy the right to do so from a business that emits less than its entitlement.
Right now, 9 Northeastern and Mid-Atlantic states are committed to developing a multi-state cap-and-trade program in a bid to reduce greenhouse gas emissions by 10% compared to 1990 levels by 2018, under the Regional Greenhouse Gas Initiative (RGGI ).
Increased innovation in energy markets also means attorneys must remain focused on new developments. The Federal Energy Regulatory Commission (FERC) has the power to levy civil penalties of up to $1 million a day, and has increased its focus on markets, according to EnergyCentral.com. Membership in the Energy Bar Association, which is affiliated with the American Bar Association, is soaring and has already surpassed the 2,600 target the organization had set for 2010, compared with fewer than 1,900 in 2000.
Law Firms Staffing Up
Warner Norcross & Judd announced it has formed a new practice group focused on climate change.
One of the firm’s Partners, Daniel DeWitt, who concentrates his practice on environmental law, will chair the new group consisting of lawyers practicing environmental, corporate, litigation, real estate and finance law as well as government affairs.
The practice group is designed “to anticipate and prepare clients for the changing nature of climate-related best practice and legislation at the state and federal levels,” according to the Grand Rapids-based law firm.
“Climate change is a complex and rapidly evolving area of the law that has the ability to impact virtually every industry in the United States,” Warner Norcross Managing Partner Douglas Wagner said. “In order to focus comprehensive resources on climate change, we have established a cross-functional team of attorneys with experience in all facets of this area.”
Thompson Hine recently announced it has established a Climate Change and Sustainable Business Solutions Group in an effort to address the complex challenges companies face related to climate change and sustainability. The group includes 23 lawyers from Thompson Hine’s Cincinnati, Cleveland, Columbus, Dayton, Atlanta and Washington, D.C, offices with extensive experience in a number of areas, including environmental, energy, transportation, finance, intellectual property, trade, real estate, construction and corporate law.
The group has already advised clients in a variety of sectors, including electric utilities, independent power producers, manufacturers, municipalities, and colleges and universities, among others. According to the firm, the group recognizes the dramatic impact that global climate change, evolving energy markets and concepts of sustainable business practices are having on governments, markets and businesses across all industries.
“Climate change is rapidly emerging as an important and complex policy area. It affects a wide array of business and public sectors and thus necessitates a multidisciplinary approach,” says Andrew Kolesar, a Leader of the Group. Co-Leader, Steve Axtell, adds, “The worldwide attention to this issue and current and expected legislation will have far-reaching effects on many companies.”
Kaye Scholer LLP has also announced the addition of Madeleine M. L. Tan to the firm’s Corporate & Finance Department as a Partner in its New York office. Among her areas of expertise, Ms. Tan advises corporations, financial institutions, specialized funds and the trading community on the financing of alternative energy projects, and derivatives and structured products.
Apart from structured finance, Ms. Tan has leveraged her leasing and project finance experience to focus on debt and equity financings of alternative energy and renewable energy projects, including wind farm and solar power plants, and projects falling under the Clean Development Mechanism of the Kyoto Protocol. Ms. Tan has significant experience with carbon emissions rules and regulations and has advised on both European and U.S. carbon finance and legislation, including the European Union Emission Trading System (”EU ETS”) and the Regional Greenhouse Gas Initiative (”RGGI”).
“Madeleine’s addition is integral to the expansion of the firm’s Green Technology Group where she will contribute to the firm’s services to companies in the carbon emissions and energy efficiency markets in the U.S. and Europe and to those developing carbon offset policies. This complements the firm’s work in Green IT and Green Outsourcing,” says William Tanenbaum, a Partner in the firm’s Green Technology Practice and Chair of the firm’s Technology, Intellectual Property & Outsourcing Practice.
To learn more about these issues or inquire about existing and future job opportunities in environmental or energy law, the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s expert legal recruiting team here.
