The forward trade saw AGL Hydro Partnership sell 10,000 tonnes of Australian emission trading units (AETUs) to Westpac at $19.00 a tonne, for settlement on February 1, 2012.

AGL engaged Minter Ellison to construct the documentation around which AETUs are traded.

The work was led by Melbourne-based partner Mitzi Gilligan. The key challenge faced by the team was to draft documentation that sufficiently covered the field of plausible outcomes, while still enabling a degree of certainty of what is to be traded.

Recycling will also play a part in the green deal. Gilligan said the documentation prepared for the transaction would be used in future trades already foreshadowed by AGL.

“The entire market is facing a paradigm shift in a carbon-constrained world,” Gilligan said.

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“Helping AGL capitalise on its market-leading position in the renewable energy space through this innovative transaction has been enormously satisfying. We have advised AGL for a number of years, and love working with an international leader in its field.”

See News section for further coverage of this deal