Confirmation - Emissions Annex Provision

EU Emissions Allowance Transaction Annex to the 2005 ISDA Commodity Definitions

Index: Click ᐅ to expand:

Pro tip: for tons of information about EU ETS and EU financial services regulation see Michał Głowacki’s magnificent emissions-euets.com website.

Emissions trading documentation

ISDA: EU Anatomy • EU Wikitext • EU Nutshell (premium) • UK Anatomy • UK Wikitext (to be merged into EU Anatomy)
IETA: IETA Master Agreement • IETA Wikitext • IETA Nutshell (premium)

EFET: EFET Allowances Appendix • EFET Allowances Wikitext • EFET Nutshell (premium)

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Here are the things you really ought to address in your Emissions Allowance Forward Transaction Confirmation.

Failure to Deliver method:

Seller (Delivering Party)	[SPECIFY]
Buyer (Receiving Party)	[SPECIFY]
Allowance Type	EU Allowance
Specified Compliance Period	Fourth Compliance Period
Number of Allowance	[SPECIFY] Metric Tons
Allowance Purchase Price	[SPECIFY] EUR per Metric Tons
Total Purchase Price	[SPECIFY] EUR
Business Days	TARGET
Settlement Currency	EUR
Payment Date	DD MM YYYY, subject to the provisions of “Failure To Deliver”.
Delivery Date	DD MM YYYY (or, if such date is not a Delivery Business Day, the next following day that is a Delivery Business Day).
Buyer’s Specified Holding Account	[SPECIFY]
Seller’s Specified Holding Account	[SPECIFY]
Buyer’s Delivery Business Day Location	[SPECIFY]
Seller’s Delivery Business Day Location	[SPECIFY]
Calculation Agent	[Buyer][Seller]
Excess Emissions Penalty	[Applies][Does not apply] EEP Risk Period: [SPECIFY] EEP Equivalent: [SPECIFY]
Payment on Termination for Settlement Disruption	[Applies][Does not apply]