Template:M comp disc EUA Annex Suspension Event: Difference between revisions
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[[Suspension Event - Emissions Annex Provision|This]] a ''limited'' thing — some would say, arbitrarily limited — where regulatory/government fiat at the heart of the [[European Union]] stops the system functioning as it should, but not permanently. So, taking the {{euaprov|Union Registry}} offline, an {{euaprov|Administrator Event}} — but not some other regulatory driven externalities. It doesn’t include {{euaprov|Abandonment of Scheme}} or an executive decision (however unlikely) that {{euaprov|Phase 3}} {{euaprov|Allowances}} are no longer elibigle for surrender in {{euaprov|Phase 4}}. | [[Suspension Event - Emissions Annex Provision|This]] a ''limited'' thing — some would say, arbitrarily limited — where regulatory/government fiat at the heart of the [[European Union]] stops the system functioning as it should, but not permanently. So, taking the {{euaprov|Union Registry}} offline, an {{euaprov|Administrator Event}} — but not some other regulatory driven externalities. It doesn’t include {{euaprov|Abandonment of Scheme}} or an executive decision (however unlikely) that {{euaprov|Phase 3}} {{euaprov|Allowances}} are no longer elibigle for surrender in {{euaprov|Phase 4}}. | ||
''Would'' {{euaprov|Phase 3}} {{euaprov|Allowances}} ever be ineligible for surrender in {{euaprov|Phase 4}}? Technically yes; practically no. Article [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32003L0087 13 of the EU ETS Directive] requires Member States to issue replacement {{euaprov|Phase 4}} {{euaprov|Allowances}} to replace any of their Allowances which are cancelled ({{euaprov|Allowances}} are generally valid for eight years from issue). The result, as the Michał Głowacki’s excellent site [https://emissions-euets.com/euas-validity remarks], is | |||
{{quote|“Emission allowances will no more be replaced between periods, but will be valid indefinitely.”}} | |||
Therefore elaborate provisions to provide what happens in an Option or a Forward should Phase 3 EUAs become ineligibility, (we have seen this described, oddly, as a “Fungibility Event”, are | |||
Revision as of 13:34, 21 March 2023
This a limited thing — some would say, arbitrarily limited — where regulatory/government fiat at the heart of the European Union stops the system functioning as it should, but not permanently. So, taking the Union Registry offline, an Administrator Event — but not some other regulatory driven externalities. It doesn’t include Abandonment of Scheme or an executive decision (however unlikely) that Phase 3 Allowances are no longer elibigle for surrender in Phase 4.
Would Phase 3 Allowances ever be ineligible for surrender in Phase 4? Technically yes; practically no. Article 13 of the EU ETS Directive requires Member States to issue replacement Phase 4 Allowances to replace any of their Allowances which are cancelled (Allowances are generally valid for eight years from issue). The result, as the Michał Głowacki’s excellent site remarks, is
“Emission allowances will no more be replaced between periods, but will be valid indefinitely.”
Therefore elaborate provisions to provide what happens in an Option or a Forward should Phase 3 EUAs become ineligibility, (we have seen this described, oddly, as a “Fungibility Event”, are