Clean Energy & Climate Tech Legal Advisory

Clean Energy & Climate Tech Legal Advisory

Montague Law advises climate technology companies, clean energy developers, carbon management platforms, and sustainability-focused investors on the legal, regulatory, and transactional challenges of building businesses that address climate change. Our practice spans the full climate tech landscape — from hardware-intensive companies developing next-generation solar cells and battery chemistries to software platforms enabling carbon accounting, energy optimization, and ESG compliance.

Climate technology is attracting unprecedented capital — driven by the Inflation Reduction Act, corporate net-zero commitments, and the growing economic competitiveness of clean energy solutions. Successfully building and scaling climate tech businesses requires counsel that understands the underlying science and engineering, the regulatory incentive structures, the project finance and venture capital markets, and the policy landscape that shapes commercial opportunities. Montague Law brings this integrated perspective to every climate tech engagement.

Climate Tech Venture Capital & Growth Financing

Climate tech companies raise capital from a specialized investor base that evaluates both technological merit and the regulatory and policy conditions that affect market adoption. We structure seed through growth-stage financings for climate tech companies across hardware, software, and project development models. Our work accounts for the unique deal terms that climate tech investors negotiate — including milestone-based tranches tied to technology readiness levels, strategic investor co-investment provisions, government grant coordination, and the integration of project-level and corporate-level financing strategies.

Inflation Reduction Act & Federal Incentive Optimization

The IRA created a transformative incentive landscape for clean energy and climate technology. Montague Law advises on the full range of IRA provisions — including the expanded Investment Tax Credit and Production Tax Credit, the new standalone energy storage credit, the Section 45V clean hydrogen production credit, the Section 45Q carbon capture credit, the advanced manufacturing production credit (Section 45X), and the domestic content and energy community bonus credits. We help companies structure projects and corporate operations to maximize available incentives while managing the compliance obligations that attach to each credit.

Carbon Markets & Climate Commodities

Carbon credit markets — both voluntary and compliance — are creating new transaction structures and regulatory requirements. We advise on carbon credit origination and verification processes, carbon offset purchase agreements, emissions trading under cap-and-trade programs, Renewable Identification Number (RIN) and Low Carbon Fuel Standard (LCFS) credit transactions, and the legal frameworks governing corporate net-zero and carbon neutrality claims. We also advise on the emerging regulatory scrutiny of greenwashing and the substantiation requirements for climate-related marketing claims.

Carbon Capture, Utilization & Storage (CCUS)

CCUS projects present unique legal challenges spanning subsurface property rights, EPA Class VI well permitting, long-term liability frameworks for stored CO2, pore space ownership and leasing, pipeline right-of-way acquisition, and the monetization of Section 45Q tax credits. Montague Law advises CCUS developers on project structuring, regulatory approvals, offtake agreements for captured carbon, and the negotiation of long-term storage agreements with landowners and subsurface rights holders.

Clean Hydrogen & Alternative Fuels

Green and blue hydrogen production, sustainable aviation fuel (SAF), renewable natural gas (RNG), and other alternative fuels are emerging as significant commercial opportunities supported by federal and state incentives. We advise on the legal and regulatory frameworks governing hydrogen production, transportation, and storage, including the Section 45V production credit qualification requirements, electrolyzer procurement and installation agreements, hydrogen offtake agreements, and the regulatory treatment of hydrogen under energy and environmental regulations.

Climate Tech M&A & Strategic Partnerships

The climate tech sector is experiencing significant M&A activity as established energy and industrial companies acquire innovative technology platforms. We advise on acquisitions, joint ventures, and strategic partnerships in the climate tech space — addressing the valuation of pre-revenue technology companies, the assignment and assumption of government grants and tax credit positions, technology licensing and co-development arrangements, and the integration of project-level assets with corporate platforms.

ESG Compliance & Sustainability Reporting

Companies across all sectors face growing ESG disclosure and reporting obligations — including the SEC’s climate disclosure rules, EU Corporate Sustainability Reporting Directive (CSRD), California’s climate disclosure laws, and voluntary frameworks such as TCFD and GRI. Montague Law advises companies on compliance with these evolving requirements, including greenhouse gas emissions accounting, climate risk assessment and scenario analysis, supply chain sustainability due diligence, and the legal risks associated with ESG-related claims and commitments.

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Illustrative Engagement: Direct Air Capture Startup

A climate tech startup developing a novel direct air capture (DAC) technology engaged Montague Law to advise on Series A financing and project development strategy. Our team structured a $12 million Series A round with a climate-focused venture fund, incorporating milestone tranches tied to technology demonstration and DOE grant milestones. We also advised on the company’s application for a DOE Loan Programs Office loan guarantee, negotiated a carbon credit pre-purchase agreement with a corporate buyer seeking verified carbon removal credits for its net-zero commitments, and developed the regulatory strategy for the company’s first commercial-scale project — including EPA Class VI permitting for geological storage and Section 45Q credit qualification.

This illustrative engagement is a hypothetical composite and does not represent any specific client matter. It is provided to demonstrate the types of work Montague Law handles for climate tech companies.

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Frequently Asked Questions

What is the Section 45Q carbon capture credit?

Section 45Q provides a tax credit for the capture and permanent geological storage, utilization, or storage of qualified carbon oxide. The IRA increased the credit values to $85 per metric ton for geological storage and $60 per metric ton for utilization, with additional provisions for direct air capture ($180/$130). The credit is available for 12 years from the date equipment is placed in service and is subject to prevailing wage and apprenticeship requirements for full credit value. We advise on 45Q qualification, structuring, and monetization.

How do I qualify for IRA bonus credits?

The IRA provides bonus credits for projects that meet domestic content requirements (using specified percentages of domestically manufactured steel, iron, and manufactured products) and for projects located in energy communities (defined areas with significant fossil fuel employment or retired fossil fuel infrastructure). Each bonus can add 10 percentage points to the base credit value. Qualification requires detailed documentation and certification. We advise on bonus credit qualification strategies and the compliance documentation required.

What is greenwashing liability?

Greenwashing refers to making misleading environmental or sustainability claims. Companies face growing legal risk from FTC enforcement (under the Green Guides), SEC scrutiny of ESG-related disclosures, state consumer protection actions, and private litigation. Claims about carbon neutrality, net-zero commitments, and the environmental benefits of products must be substantiated and accurately qualified. We advise companies on the legal standards governing environmental marketing claims and help design communication strategies that are both compelling and defensible.