AEU Allowance - Emissions Annex Provision

From The Jolly Contrarian
Jump to navigation Jump to search
EU Emissions Allowance Transaction Annex to the 2005 ISDA Commodity Definitions

A Jolly Contrarian owner’s manual™

AEU 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.

AEU Allowance in all its glory

AEUA or AEU Allowance: Means an “allowance” as defined in the Directive and which is issued under Chapter II thereof.

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:

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

Overview

edit

Too long, didn’t read: “A” is for Aviation, and an AEUA — known to all but ISDA Ninjas as an “EUAA” — is a specific Aviation EU Allowance and trades separately, and at a different price, to normal EU Allowances.

Summary

edit

Okay so this is really cool. This is where the JC, dare we say it ourselves, really comes into its own. We have spent the last 45 minutes trying to work out what the hell an AEUA is, and how it differs to a normal EUA, being the Allowance issued under the regular EU ETS. ISDA’s crack drafting squad™, in its inimitable, gnomic style, has elected to define it not by explaining what that extra “A” stands for, but rather explained where it is defined: in Chapter II. Those who trundle off to the EU ETS regulation to see will be disappointed to discover there appears to be no Chapter II, or indeed any Chapters at all: European directives divide themselves into Articles, and Parts, not chapters.

At this point you will blame yourself, curse your own lack of facility with Boolean syntax, and double down on your Google search. This is not likely to help. You will continue to cycle round the same unenlightening sites, including an infuriating LawInsider page which appears to be some half-witted AI project to regurgitate text without any context whatsoever. What you have to do is ask someone in the industry who knows.

When you do this it transpires there are normal EU Allowances, and aviation EU allowances, known to participants not as AEUAs, but as “EUAAs”. Google these and — alongside plaintive charitable sites like the European Union Agency for Asylum — you will quick;ly find references to the aviation allowances, futures in them, auction sites for them, and the trail of breadcrumbs may lead you eventually to the mythical Chapter II which is there, after all, only it just won’t make itself known to you unless you google the magic keyword, in this case “aviation”. then you will — may — find the latest version of the EU ETS legislation here.

Premium content

Here the free bit runs out. Subscribers click 👉 here. New readers sign up 👉 here and, for ½ a weekly 🍺 go full ninja about all these juicy topics 👇
edit
  • The JC’s famous Nutshell summary of this clause
Template:M premium EUA Annex AEU Allowance

See also

edit

References