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Supporting our clients in the net zero economy: reasons to be cheerful

What is due dilligence?

A recent report from the CBI’s Energy and Climate Intelligence Unit delivers the encouraging message that there are now some 20,000 businesses in the “the net zero economy” in the UK, contributing £71bn (3.7%) of annual gross value add. For further information click here.

Other headlines from the report include the fact that 840,000 jobs (3.2%) are supported by businesses in the sector, including those in the supply chain. And that venture funding continues to grow at a trend rate of over 30%.

At MDS Advisory, we are proud of our client relationships with numerous businesses in this field. Every day, we advise on matters from project permitting, finance and certification to warranty and revenue claims. In many cases, clients have seen and are now grasping the opportunity to diversify and we now find ourselves advising the same people on subjects including electric vehicle and charging schemes, voluntary carbon credits, long term product disposal and recycling issues, energy storage and installation programmes. This adds depth to the core of our client base which is in energy project development and generation (using technologies such as solar and energy-from-waste).

As we have written previously, this sector does not require significant legal innovation. English law works well and enables business models and value creation. When issues come up, they are often the same general business questions that we have seen before. Linking back to the standout facts and figures reported by the CBI:

  • It’s often about “value added” now and in the future. We sit alongside our clients thinking about how to shape their business to anticipate future technical and regulatory changes (from energy market reforms to tax changes).
  • It is now the norm for companies to attract and take on significant external investment (either directly into their operations or to support their projects). This requires a real understanding of the investor’s perspective and we are constantly nurturing our relationships on the funder side, in order to keep abreast of this.
  • Productive employees are a massive source of value. Retention and incentivisation, and implementing the right employee participation structure for the business model, are key to success. We have advised on numerous such issues in recent months.

We are always open to sharing our expertise with existing and new clients. We have committed to giving at least 10% of our working time to informal discussions that we hope and expect will lead to long term engagements.

If you have an issue or opportunity on which you think we can advise, then please contact: Adam Oliver on adamoliver@mdsadvisory.com for company, project and commercial legal advice and Michael Spencer on michaelspencer@mdsadvisory.com for construction advice.