Defined Terms - EFET Allowance Provision

2007 EFET General Agreement
Version 2.1(a) (Power)

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Administrator Event means the suspension of all or some of the processes in respect of a Registry or the EUTL in accordance with the Registries Regulation by the National Administrator or the Central Administrator (as applicable)
(i) where that Registry is not operated and maintained in accordance with the provisions of the Registries Regulation, or any other applicable law, or
(ii) for the purposes of carrying out scheduled or emergency maintenance, or
(iii) where there has been or following reasonable suspicion of, a breach of security which threatens the integrity of the registries system (including any back up facilities);

Template:EFET Allowance Annex AEUAAffected Allowance” means an Allowance which is or is alleged to have been the subject of an Unauthorised Transfer as confirmed by an Appropriate Source; Template:EFET Allowance Annex Aircraft Operator Allowance means an allowance to emit one tonne of carbon dioxide (C02) equivalent during a specified period, or such other type of unit as may be recognised as, valid for the purposes of meeting the requirements of applicable law and the relevant Emissions Trading Scheme on the Delivery Date, including, without limitation, for the purpose of meeting emissions’ related commitment obligations under the EU ETS;
Template:EFET Allowance Annex Allowances Appendix Template:EFET Allowance Annex Allowance Type Template:EFET Allowance Annex Allowances Termination Amount Template:EFET Allowance Annex Allowance Transaction Template:EFET Allowance Annex Applicable Rule(s)Appropriate Source” means any ‘competent authority’ and/or the ‘Central Administrator’ (as those terms are defined in the Registries Regulation), National Administrator or any other authority having power pursuant to the Directive and/or the Registries Regulation to block, suspend, refuse, reject, cancel or otherwise affect the Transfer (whether in whole or in part) of Allowances, any recognized law enforcement or tax authorities of a Member State, European Anti-fraud Office of the European Commission or Europol;
Template:EFET Allowance Annex Central Administrator Template:EFET Allowance Annex Compliance Period Template:EFET Allowance Annex Compliance YearContract Price” means, in respect of an Allowance Transaction (and, where applicable, for a particular Compliance Period) the amount agreed to be the purchase price for that Contract Quantity, excluding applicable taxes; Contract Quantity means, in respect of an Allowance Transaction, the number of Allowances (of one or more Compliance Periods, where applicable, as agreed to be bought and sold between the Parties;
Cost of Carry Amount has the meaning specified in § 7.5(d) (Cost of Carry);
Cost of Carry Calculation Period” means the number of calendar days from and including the original Due Date which would have applied but for delayed delivery to, but excluding, the delayed Due Date resulting from delayed delivery;
Cost of Carry Rate” means the “EUR-EuroSTR-COMPOUND” interest rate in respect of each day in the Cost of Carry Calculation Period, provided that if the interest rate would otherwise be less than zero, the interest rate shall be floored at zero and any margin applied thereto;
Default Cost of Carry Amount” has the meaning specified in § 8.5(a)(ii);
Default Cost of Carry Calculation Period” means the number of calendar days from and including the original Due Date which would have applied but for delayed delivery to, but excluding, the delayed Due Date that would have applied assuming that the Seller sent an invoice at the earliest date it would have been entitled to do so in accordance with the methodology elected in § 13.2 (Payment) in Part II of the Allowances Appendix;
Default Cost of Carry Rate” means the “EUR-EuroSTR-COMPOUND” interest rate in respect of each day in the Default Cost of Carry Calculation Period, provided that if the interest rate would otherwise be less than zero, the interest rate shall be floored at zero and any margin applied thereto;
Template:EFET Allowance Annex Delayed Delivery Date Template:EFET Allowance Annex Delivery Business Day Template:EFET Allowance Annex Delivered Quantity Template:EFET Allowance Annex Delivery Date Template:EFET Allowance Annex Delivery Point Template:EFET Allowance Annex Delivery Schedule Template:EFET Allowance Annex DirectiveEncumbrance Loss Amount” means an amount reasonably determined by the Buyer in good faith to be its total losses and costs in connection with an Individual Contract including, but not limited to, any loss of bargain, cost of funding or, at the election of the Buyer but without duplication, loss or costs incurred as a result of its terminating, liquidating, obtaining or re-establishing any hedge or related trading position. Such amount includes losses and costs in respect of any payment already made under an Individual Contract prior to the delivery of the written notice by the Buyer and the Buyer's legal fees and out-of-pocket expenses but does not include Excess Emissions Penalty or any amount which the Buyer must pay to a third party in respect of any such penalty payable to any other party (or Relevant Authority) by that third party. The Parties agree that in circumstances where there was a breach of the No Encumbrances Obligation by the Seller caused by the Transfer of an Affected Allowance, the Buyer will be entitled to recover any losses arising out of or in connection with any claim, demand, action or proceeding brought against the Buyer by a third party consequent upon the Transfer by the Buyer of an Affected Allowance Transferred to it by the Seller under an Individual Contract;
Template:EFET Allowance Annex End of Phase Reconciliation Deadline Template:EFET Allowance Annex Emissions Trading Scheme(s Template:EFET Allowance Annex EU Template:EFET Allowance Annex EUA Template:EFET Allowance Annex EU ETS Template:EFET Allowance Annex EU ETS Directive Template:EFET Allowance Annex EUR-EuroSTR-COMPOUND Template:EFET Allowance Annex EUTLExcess Emissions Penalty” or “EEP” means a financial payment required to be made to a Relevant Authority pursuant to and in accordance with Article 16(4) of the EU ETS Directive (which, for the avoidance of doubt, shall not include any costs relating to or arising from the obligation to purchase and/or surrender Allowances in the following Compliance Year), or its equivalent under any other Emissions Trading Scheme;
Excess Emissions Penalty Equivalent” or “EEP Equivalent” means an amount which the Buyer must pay to a third party in respect of any amount payable by that third party which arose as a result of the Buyer’s failure to Transfer the required Allowances to that third party and which in turn was a consequence of the Seller’s failure to Transfer the Contract Quantity to the Buyer under this Agreement (which, for the avoidance of doubt, shall not include any costs relating to the obligation to purchase and/or surrender Allowances in the following Compliance Year);
Template:EFET Allowance Annex Expert Template:EFET Allowance Annex Fourth Compliance Period Template:EFET Allowance Annex Holding Account Template:EFET Allowance Annex Index Cessation Effective Date Template:EFET Allowance Annex Index Cessation Event Template:EFET Allowance Annex Long Stop DateLoss” means an amount that each Party reasonably determines in good faith to be its total losses and costs (or gain, in which case it shall be expressed as a negative number) in connection with the termination of the applicable Allowance Transaction(s), or any unperformed portions thereof, including, if applicable, any EEP or EEP Equivalent, any loss of bargain, cost of funding (based on the actual costs of such Party whether or not greater than market costs) or, without duplication, loss or cost incurred as a result of its terminating, liquidating, obtaining or re-establishing any related trading position (or any gain resulting from any of them). Loss shall not include legal fees or similar out-of-pocket expenses. Each Party may (but need not) determine its Loss by reference to quotations of average relevant rates or prices from two or more leading Dealers;
Template:EFET Allowance Annex Member State Template:EFET Allowance Annex National Administrator Template:EFET Allowance Annex Regulation; Template:EFET Allowance Annex Negotiation Period Template:EFET Allowance Annex New Tax Template:EFET Allowance Annex Non-Member State Template:EFET Allowance Annex Non-Taxed Party Template:EFET Allowance Annex OperatorOriginal Affected Party” means the person from whose account the first Unauthorised Transfer of any Allowance occurred;
Template:EFET Allowance Annex Other Tax Template:EFET Allowance Annex Participating Agreement Template:EFET Allowance Annex Paying Party Template:EFET Allowance Annex Payment Cycle Template:EFET Allowance Annex Physical Settlement Netting Accounts Template:EFET Allowance Annex Receiving Party Template:EFET Allowance Annex Reconciliation Deadline Template:EFET Allowance Annex Registries Regulation Registry means the registry established by a Member State, Non-Member State or the EU, in accordance with Applicable Rule(s), in order to ensure the accurate accounting of the issue, holding, Transfer, acquisition, surrender, cancellation and replacement of Allowances. For the avoidance of doubt, references to a Registry shall include the Union Registry and the Holding Accounts within the Union Registry that are under the jurisdiction of a single National Administrator designated by a Member State and will together be deemed, for the purposes of this Allowances Appendix, to be a Registry for that Member State;
Registry Operation” means, other than by reason of the occurrence of an Administrator Event:

(a) the establishment of and continuing functioning of the Relevant Registry;
(b) the establishment of and continuing functioning of the EUTL; and/or
(c) the link between each of the Relevant Registry and the EUTL;

Template:EFET Allowance Annex Relevant Authority Relevant Registry means the Registry through which a Party is obliged to perform a Transfer or acceptance of Transfer obligation under and in accordance with an Allowance Transaction. Where a Party has specified more than one Holding Account for Transfer or acceptance purposes, the Relevant Registry shall be identified in accordance with § 4.1(b);
Template:EFET Allowance Annex Rules Template:EFET Allowance Annex SE Affected Party Template:EFET Allowance Annex SE Affected Transaction Template:EFET Allowance Annex Suspension Event Template:EFET Allowance Annex TARGET Settlement Day Template:EFET Allowance Annex Tax Template:EFET Allowance Annex Taxed Party Template:EFET Allowance Annex Third Compliance PeriodTotal Contract Price” means the aggregate price to be paid for all Allowances required to be Transferred on a Delivery Date under an Allowance Transaction;
Template:EFET Allowance Annex Transfer Template:EFET Allowance Annex Transfer PointUnauthorised Transfer” means the Transfer by debiting of any Allowance from an account holder's Holding Account and the crediting of a Holding Account of another person, where such Transfer is not initiated by the relevant authorised representative or additional authorised representative (as referred to in the Registries Regulation) of the first account holder; Template:EFET Allowance Annex UEAUnion Registry” means the Registry referred to as the “Community Registry” in Article 19(1) of the EU ETS Directive; Template:EFET Allowance Annex Unpaid Amounts Template:EFET Allowance Annex VAT

Comparison

See our natty emissions comparison table between the IETA, EFET and ISDA versions of emissions trading docs

Resources and Navigation

Index: Click to expand:

Emissions trading documentation
ISDA: EU AnatomyEU Wikitext EU Nutshell (premium) • UK AnatomyUK Wikitext (to be merged into EU Anatomy)
IETA: IETA Master AgreementIETA WikitextIETA Nutshell (premium)
EFET: EFET Allowances AppendixEFET Allowances WikitextEFET Nutshell (premium)

Overview

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Summary

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See also

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References