UNIDROIT presents draft Principles on the Legal Nature of VCCs to ISDA Financial Law Reform Committee

In the context of the ongoing public consultation, on Monday, 20 July 2026, Legal Officer Giulia Previti delivered an online presentation to the Financial Law Reform Committee of the International Swaps and Derivatives Association (ISDA) on the draft UNIDROIT Principles on the Legal Nature of Verified Carbon Credits.

The presentation provided an overview of the draft instrument, whose main purpose is to offer private law guidance to help harmonise legislative efforts across jurisdictions and support the scaling of voluntary carbon markets. In particular, the draft Principles address verified carbon credits (VCCs) as the subject of proprietary rights and aim to facilitate the trading of VCCs from their creation to retirement. Ms Previti highlighted the draft instrument’s scope, structure, and key content, including provisions on innocent acquisition, custody, secured transactions, and insolvency.

Co-hosted by Peter Werner, ISDA Senior Counsel, and Ingrid York, co-Global Head of White & Case’s Financial Institutions Industry Group, the call included over 100 participants from across ISDA’s membership, including representatives from leading financial institutions, development banks, trading firms, international law firms, rating agencies, and exchanges. Participants were encouraged to engage in the consultation and provide feedback on the draft instrument.

The consultation runs until 21 September 2026. Comments may be submitted to the UNIDROIT Secretariat at VCC-consultation@unidroit.org. All information regarding the consultation, including the text of the draft instrument in English and in French (black-letter Principles only), is available on the dedicated consultation webpage: https://www.unidroit.org/work-in-progress/verified-carbon-credits/2026-wg-pc/.

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