Final Delivery Date - Emissions Annex Provision

EU Emissions Allowance Transaction Annex to the 2005 ISDA Commodity Definitions
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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)

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Section Final Delivery Date in a Nutshell™

Use at your own risk, campers!

Final Delivery Date means the second Delivery Business Day after Receiving Party gives a notice of a Failure to Deliver by Delivering Party or, if earlier, the Reconciliation Deadline on or following the Delivery Date. view template

Full text of Section Final Delivery Date

Final Delivery Date: Means, the date that is the second Delivery Business Day after notice is given under Part (d)(ii)(1) (Failure to Deliver by Delivering Party) requiring Delivering Party to remedy a failure to deliver or, if earlier, the Reconciliation Deadline on or immediately following the relevant Delivery Date. view template

Comparison

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

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Summary

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.