Template:Nutshell EUA Annex Adjustment Event
The varieties of Adjustment Event
(d)(iv) Abandonment of Scheme
- (1) If before the Delivery Date the European Community officially discontinues the Scheme either party may terminate the Transaction by notice, there will be no further delivery or payment obligations (other than payments due for already-performed deliveries) and no payments will be due under Section 6(e).
- (2) Upon such a termination, together with interest from the payment date to termination date, at the prevailing overnight deposit rate in the interbank market:
- Forwards and Calls: Delivering Party must promptly refund any amount Receiving Party has paid under Forwards and Calls.
- Puts: Receiving Party must promptly refund any amounts Delivering Party paid under a Put.
Administrator Event means the suspension of a Relevant Registry’s, the EUTL’s or an LSTL’s processes under the Registries Regulation by a National Administrator or the Central Administrator:
- (i) where that Relevant Registry is not operated and maintained in accordance applicable law,
- (ii) for scheduled or emergency maintenance,
- (iii) due to a breach of security threatening the integrity of the registries system or its back up facilities; or
- (iv) upon suspension of the mutual recognition of Allowances under a Linking Agreement.
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.
Suspension Event: any date a party cannot perform its delivery or acceptance obligations through a Relevant Registry as a result of:
- (i) there being no Registry Operation; or
- (ii) an Administrator Event.