Norton Rose and Allen & Overy (A&O) have bagged roles on the formation of the biggest private fund created to trade in carbon dioxide emission credits.

The two firms are advising on boutique investment bank Climate Change Capital's (CCC's) $830m (£439.4m) fund formation. The bank has taken three months to raise the $830m and expects to raise more than $1bn (£529m) by its second close.

Norton Rose advised CCC on the fund's formation with energy partner John Wood leading. The deal is the first instruction for Norton Rose by CCC, which has traditionally used Baker & McKenzie. It won the instruction from CCC after pitching earlier this year and worked with CCC general counsel Anthony Hobley on the deal.

Wood commented: "We are delighted to be acting for probably the most high-profile niche investment bank in the market. We are very active in this space and would expect to stay competitive."

A&O advised UK energy supplier Centrica, one of three investors in the fund. Environment partner Owen Lomas led the team with derivatives partner Richard Tredgett, funds partner John Goodhall and trusts partner Richard Turnor.

The magic circle firm counts Centrica as a regular client and has advised it on previous CO2 emissions deals.

Lomas said: "CCC has raised nearly $1bn which will be invested in new projects that will generate these emissions savings. The fund is the biggest private fund worldwide ever put together for investing in these projects and the area is very much at the cutting edge."

It is thought that the other two investors, Dutch pension funds ABP and PGGM, were largely advised in-house.

In a related deal, CCC is involved in an international project which will see it invest in a scheme to reduce emissions in China. Bakers corporate partner Clive Cook advised CCC on the investment.

A&O advised Centrica and Deutsche Bank, which also invested in the scheme separately, while Clifford Chance energy partner Bleddyn Phillips and environment partner Nigel Howorth advised co-investor Morgan Stanley. A further investor, Och-Ziff Capital Management Group, was advised by Linklaters.