Allowance - Emissions Annex Provision

EU Emissions Allowance Transaction Annex to the 2005 ISDA Commodity Definitions A Jolly Contrarian owner’s manual™ Allowance in a Nutshell™ The JC’s Nutshell™ summary of this term has moved uptown to the subscription-only ninja tier. For the cost of ½ a weekly 🍺 you can get it here. Sign up at Substack. You can even ask questions! Ask about it here. Allowance in all its glory Allowance: Means, in respect of an EU Emissions Allowance Transaction, an allowance to emit one tonne of carbon dioxide (CO2) equivalent during a specified period which is valid for meeting emissions related commitment obligations under the Scheme and which is of the specified Allowance Type and relates to the Specified Compliance Period. edit Comparison See our natty emissions comparison table between the IETA, EFET and ISDA versions of emissions trading docs Resources and Navigation Index: Click ᐅ to expand: ISDA Emissions TOC EUA Annex - Premium Emissions 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) Premium version of this page

Overview

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The definition of Allowance is more or less the same in all three emissions trading documentation regimes. Compare:
ISDA: Allowance
IETA: Allowance
EFET: Allowance

Summary

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Well — not quite the same. The IETA, which in most other regards falls over itself to be more verbose, is positively terse in comparison with the ISDA and EFET Annex, never getting into the weeds of how many tonnes of carbon dioxide an allowance entitles one to emit, or anything like that. Perhaps it is future-proofing itself. Time will tell: the proof of the pudding is in, well, the future.

The EFET and the ISDA allow themselves some successor protection through their “such other type of unit as may be recognised as, valid for the purposes of meeting the requirements of applicable law” so we don’t suppose anything much turns on it. But it would be fun, one day, if it did.

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• The JC’s famous Nutshell™ summary of this clause

Template:M premium EUA Annex Allowance

See also

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