First meeting of the Experts’ Group on Carbon Markets
In March 2025, the Council on General Affairs and Policy (CGAP) mandated the establishment of an Experts’ Group (EG) to study the private international law issues arising from carbon markets, as described in Prel. Doc. No 6 of November 2024 (see Conclusion and Decision No 18 of CGAP 2025).
From 13 to 15 May 2025, the EG on Carbon Markets met for the first time. The meeting, held in hybrid format, was attended by 60 delegates and other experts, representing 19 HCCH Members and six Observers, as well as by members of the Permanent Bureau (PB) of the HCCH.
During the meeting, participants discussed the background of the EG, along with the expected scope and prioritisation of its work and the planning of the matters to be studied in the subsequent meetings. The EG also discussed the scope of its work in relation to the carbon markets as a whole, in particular the private international law issues that arise throughout each of the stages of the carbon project lifecycle, including the lifecycle of carbon credits that exists within the carbon project lifecycle.
The mandate of the EG includes, as its initial focus, the consideration of the possible inclusion of an applicable law provision in the draft UNIDROIT Principles on the Legal Nature of Verified Carbon Credits. The EG therefore heard a presentation from the UNIDROIT Secretariat on the draft UNIDROIT Principles, including the text of the draft Principle on applicable law as part of the workstream. The EG concluded that, at present, it was not yet able to come to consensus on providing any considered positions on the text of draft Principle 4 as presented, and decided that the topic should be further considered in intersessional work and at its second meeting.
EG participants further reviewed part of the Issues Paper prepared by the PB, which raised questions relating to the holistic study of private international law issues arising from carbon markets for the consideration of the EG.
On 13 May, participants attended a technical roundtable organised by the PB adjacent to the meeting, featuring public and private sector experts who discussed recent practical developments relating to carbon markets, as well as the activities that their governments and organisations are currently undertaking. The presenters provided practical insights in relation to the private international law (jurisdiction, applicable law, recognition and enforcement and international cooperation mechanisms) issues that are already arising in the practical operation of carbon markets.
The EG will hold two further meetings in 2025, tentatively scheduled for October and December respectively, following which it will present a report on the progress of its work to CGAP in March 2026.
More information on the Carbon Markets Project is available on the HCCH website.