Notice. This page is informational and general in nature. Outcomes depend on project facts, land and asset control, stakeholder outcomes, local rules, standard and methodology requirements, KYC and AML, sanctions screening, diligence, and legal documentation. Obtain independent legal advice for land rights, contracting, regulatory interpretations, and enforceability. FG Capital Advisors is an advisory firm and does not provide legal advice.
Carbon Project Risk Legal And Article 6 Readiness
Carbon projects are scrutinized as financial assets. If title and control are unclear, stakeholder records are weak, claims are not governed, or delivery remedies are poorly drafted, buyers and capital providers will discount the project or walk away.
FG Capital Advisors runs risk and bankability advisory to strengthen diligence posture before commercialization or financing. We coordinate risk registers, mitigation plans, contracting inputs, and claims controls. Where relevant, we assess Article 6 considerations and double-claim exposure within the project’s target market and buyer requirements.
Request A QuoteOutcomes Clients Use This For
- Identify and remediate bankability risks before entering buyer or investor diligence.
- Reduce reversal and dispute exposure through documented mitigation and monitoring discipline.
- Standardize claims governance so public statements match evidence and registry records.
- Prepare a defensible diligence posture for offtake, pre-purchase, or project finance terms.
Common searches: carbon project risk, land tenure diligence, reversal risk mitigation, Article 6 readiness, corresponding adjustment, carbon claims governance.
Who We Serve
- Developers targeting institutional buyers or external capital with formal diligence standards.
- Projects operating in complex land tenure environments or multi-stakeholder settings.
- Portfolios that need consistent risk controls and disclosure discipline across projects.
- Teams negotiating long-term offtake where delivery and claims risk must be contractually controlled.
Risk Areas We Cover
We focus on risks that affect bankability, pricing, and the ability to close contracts. The objective is a controlled posture that can withstand diligence and remain stable across vintages.
- Land and asset control: rights to implement, access, monitor, and enforce within the stated boundary.
- Stakeholder and safeguards: engagement records, grievance process, benefit-sharing logic, and documented commitments.
- Permanence and reversal: natural and operational risk mapping, mitigants, monitoring discipline, and buffer considerations.
- Leakage and boundary integrity: leakage risk identification and tracking, and boundary consistency with actual operations.
- Claims governance: controlled language on co-benefits, biodiversity, community impacts, and public disclosures.
- Delivery and contract risk: delivery schedules, substitution, make-good, termination triggers, dispute handling, and venue considerations.
- Article 6 exposure: assessment of double-claim risk and corresponding adjustment considerations where relevant to the target market.
Process
| Step | What we do | What you get |
|---|---|---|
| 1. Risk and bankability audit | Review project documents, land and asset control evidence, safeguards records, MRV plan posture, and commercialization intentions. | A risk register with severity ratings, evidence gaps, and prioritized mitigations. |
| 2. Mitigation and governance build | Define mitigants, monitoring implications, and documentation requirements. Establish claims and disclosure controls. | A mitigation plan and a claims governance framework aligned to standard rules and buyer policy. |
| 3. Contracting inputs | Provide commercial and risk inputs for counsel on delivery remedies, reporting covenants, disclosures, and dispute handling mechanics. | A term position memo and diligence-ready risk disclosures for contracting workstreams. |
| 4. Diligence support | Support buyer and investor diligence Q&A and ensure responses remain consistent with evidence and controlled disclosures. | A controlled diligence response workflow designed to reduce negotiation friction. |
FG Capital Advisors provides advisory services on a best-efforts basis and does not provide legal advice. We do not guarantee regulatory outcomes or buyer acceptance. Article 6 interpretations and market requirements vary and must be confirmed at the time of execution with qualified counsel.
What To Send For A Quote
- Project boundary map, land or asset control evidence, and any material permits or consents.
- Standard and methodology pathway, plus current PDD and safeguards documentation status.
- MRV plan, monitoring protocols, and any prior validation or verification correspondence.
- Commercialization intent, target buyers, and any draft offtake or pre-purchase terms.
- Known risk events, disputes, or stakeholder issues, if any, with supporting records.
When It Does Not Fit
- No verifiable control of land, assets, or implementation authority.
- Expectation of legal opinions without independent counsel.
- Requests seeking to bypass standard requirements, verification, or buyer diligence.
- Inability to support disclosure discipline and ongoing reporting obligations.
FAQ
Do you provide legal advice or legal opinions?
No. We provide risk and bankability advisory and contracting inputs for your counsel. Legal conclusions must be delivered by qualified counsel in the relevant jurisdiction.
How do buyers evaluate reversal and permanence risk?
Buyers typically look for documented risk mapping, credible mitigants, MRV discipline, and contract terms that allocate delivery and make-good obligations clearly.
Do Article 6 considerations always apply?
No. Relevance depends on project context, target market, and buyer claims requirements. We assess exposure and readiness factors and coordinate with counsel where needed.
What is the most common commercial risk you see?
Uncontrolled claims and weak disclosure discipline. It creates reputational exposure and pricing discounts even when the underlying project is technically sound.
If you are preparing for institutional diligence, long-term offtake, or carbon project financing, share your current project package to receive a risk scope and commercial terms.
Request A QuoteDisclosure. This content is for informational purposes and does not constitute legal, tax, accounting, or financial advice. FG Capital Advisors is not a registry, validator, verification body, broker-dealer, or investment adviser. Any support is provided on a best-efforts basis and remains subject to third-party requirements, diligence, documentation, and approvals.
