Template:M summ IETA Force Majeure

This is substantially the same idea as Settlement Disruption Event in the ISDA EU Emissions Annex. Here is our nutshell:

Settlement Disruption Event: Something beyond the affected party’s control that, having used all reasonable efforts, it cannot overcome and which makes it impossible to perform its obligations to deliver or to accept Allowances under an EU Emissions Allowance Transaction. The following will not count as Settlement Disruption Events if they cause an inability to deliver Allowances in the affected party’s Specified Holding Account:

(a) the low or non-allocation of Allowances by any state;

(b) a Member State or Central Administrator not replacing Third Compliance Period Allowances with Fourth Compliance Period Allowances; or

(c) any party’s failure of a party to procure sufficient Allowances to meet its delivery obligations.

Something which otherwise would be a Settlement Disruption Event and a Suspension Event, will count as a Suspension Event and not a Settlement Disruption Event.