Final Delivery Date - Emissions Annex Provision
EU Emissions Allowance Transaction Annex to the 2005 ISDA Commodity Definitions
A Jolly Contrarian owner’s manual™
Final Delivery Date in all its glory
See our natty emissions comparison table between the IETA, EFET and ISDA versions of emissions trading docs
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Final Delivery Date is only relevant on a Failure to Deliver — in the ordinary course, the date at the end of the Transaction where the Seller delivers up the EUAs is just a plain old Delivery Date — even ~ sigh ~ if it also is a Delayed Delivery Date. You get the sense the ’squad was having a bit of a crisis of confidence when they put this Annes together, don’t you.
What is the relevance of the Final Delivery Date?
The final delivery date is relevant in the context of a failure to deliver and it is designed to give a window to remedy that failure to deliver before a Reconciliation Deadline. This is designed to fall inside the period in which counterparties which are physical operators and who actually need to surrender the EUAs to offset their actual carbon emissions can still surrender their EUAs and avoid an excess emission penalty under the terms of the EU ETS. So, in a nutshell, your final delivery date is two days after you notified of your Failure to Deliver or, if earlier than that, the Reconciliation Deadline, which is April 30 every year.
- The JC’s famous Nutshell™ summary of this clause