Template:EFET Allowance Annex 8.3: Difference between revisions

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Template:EFET Allowance Annex 8.3 (view source)

Revision as of 12:27, 8 September 2023

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(Created page with "§ {{euaprov|8.3}} '''{{efetaprov|Excess Emissions Penalty (“EEP”) and EEP Equivalent}}''': :(a) '''Applicability'''. The Parties to any {{efetaprov|Allowance Transaction}}s desiring to make {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} inapplicable and inoperative to the calculation of the {{efetaprov|Buyer’s Cover Costs}} for any {{efetaprov|Allowance Transaction}}s between them may do so either globally by specifying {{efetaprov|EEP}} or {{efetaprov|EEP E...")
 
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§ {{euaprov|8.3}} '''{{efetaprov|Excess Emissions Penalty (“EEP”) and EEP Equivalent}}''':  
§ {{efetaprov|8.3}} '''{{efetaprov|Excess Emissions Penalty (“EEP”) and EEP Equivalent}}''':  
   
   
:(a) '''Applicability'''. The Parties to any {{efetaprov|Allowance Transaction}}s desiring to make {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} inapplicable and inoperative to the calculation of the {{efetaprov|Buyer’s Cover Costs}} for any {{efetaprov|Allowance Transaction}}s between them may do so either globally by specifying {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} as not applying in Part II of this {{efetaprov|Allowances Appendix}}, or specifically, with respect to a particular {{efetaprov|Allowance Transaction}}, by so agreeing in the terms of that {{efetaprov|Allowance Transaction}} itself.  
:(a) '''Applicability'''. The Parties to any {{efetaprov|Allowance Transaction}}s desiring to make {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} inapplicable and inoperative to the calculation of the {{efetaprov|Buyer’s Cover Costs}} for any {{efetaprov|Allowance Transaction}}s between them may do so either globally by specifying {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} as not applying in Part II of this {{efetaprov|Allowances Appendix}}, or specifically, with respect to a particular {{efetaprov|Allowance Transaction}}, by so agreeing in the terms of that {{efetaprov|Allowance Transaction}} itself.  


:(b) '''{{euaprov|Excess Emissions Penalty}}'''. If {{efetaprov|EEP}} is applicable, the {{efetaprov|Buyer}} may invoice the {{efetaprov|Seller}} in the amount of an {{efetaprov|EEP}} it incurs as the result of the {{efetaprov|Seller}}’s failure to {{efetaprov|Transfer}} to it {{efetaprov|Allowance}}s when required pursuant to the terms of an {{efetaprov|Allowance Transaction}}.  
:(b) '''{{efetaprov|Excess Emissions Penalty}}'''. If {{efetaprov|EEP}} is applicable, the {{efetaprov|Buyer}} may invoice the {{efetaprov|Seller}} in the amount of an {{efetaprov|EEP}} it incurs as the result of the {{efetaprov|Seller}}’s failure to {{efetaprov|Transfer}} to it {{efetaprov|Allowance}}s when required pursuant to the terms of an {{efetaprov|Allowance Transaction}}.  
   
   
:(c) '''{{euaprov|Excess Emissions Penalty Equivalent}}'''. If {{efetaprov|EEP Equivalent}} is applicable, the {{efetaprov|Buyer}} may invoice the {{efetaprov|Seller}} for an {{efetaprov|EEP Equivalent}} it incurs as the result of the {{efetaprov|Seller}}’s failure to {{efetaprov|Transfer}} to it {{efetaprov|Allowance}}s when required pursuant to the terms of an {{efetaprov|Allowance Transaction}}.  
:(c) '''{{efetaprov|Excess Emissions Penalty Equivalent}}'''. If {{efetaprov|EEP Equivalent}} is applicable, the {{efetaprov|Buyer}} may invoice the {{efetaprov|Seller}} for an {{efetaprov|EEP Equivalent}} it incurs as the result of the {{efetaprov|Seller}}’s failure to {{efetaprov|Transfer}} to it {{efetaprov|Allowance}}s when required pursuant to the terms of an {{efetaprov|Allowance Transaction}}.  
   
   
:(d) '''{{euaprov|Duty to Mitigate}}'''. The {{efetaprov|Seller}}’s obligation to pay the {{efetaprov|EEP}} or the {{efetaprov|EEP Equivalent}} is subject always to the {{efetaprov|Buyer}}’s overriding obligation to use commercially reasonable endeavours (including, without limitation, making use of any excess {{efetaprov|Allowance}}s it may have available to it at the time, and/or procuring such {{efetaprov|Allowance}}s as are available in the market) to satisfy its obligation to surrender the required number of {{efetaprov|Allowance}}s necessary to avoid or otherwise mitigate its {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} liability. For the avoidance of doubt, the {{efetaprov|Buyer}}’s duty to mitigate its {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} exposure is limited to management of its Allowance portfolio and shall not impose upon it any further obligation regarding its operation of any installation with an obligation to surrender {{efetaprov|Allowance}}s to a {{efetaprov|Relevant Authority}}.  
:(d) '''{{efetaprov|Duty to Mitigate}}'''. The {{efetaprov|Seller}}’s obligation to pay the {{efetaprov|EEP}} or the {{efetaprov|EEP Equivalent}} is subject always to the {{efetaprov|Buyer}}’s overriding obligation to use commercially reasonable endeavours (including, without limitation, making use of any excess {{efetaprov|Allowance}}s it may have available to it at the time, and/or procuring such {{efetaprov|Allowance}}s as are available in the market) to satisfy its obligation to surrender the required number of {{efetaprov|Allowance}}s necessary to avoid or otherwise mitigate its {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} liability. For the avoidance of doubt, the {{efetaprov|Buyer}}’s duty to mitigate its {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} exposure is limited to management of its Allowance portfolio and shall not impose upon it any further obligation regarding its operation of any installation with an obligation to surrender {{efetaprov|Allowance}}s to a {{efetaprov|Relevant Authority}}.  
   
   
:(e) '''{{euaprov|Evidence of Commercially Reasonable Efforts}}'''. Upon request, the {{efetaprov|Buyer}} shall confirm to the {{efetaprov|Seller}}:  
:(e) '''{{efetaprov|Evidence of Commercially Reasonable Efforts}}'''. Upon request, the {{efetaprov|Buyer}} shall confirm to the {{efetaprov|Seller}}:  
   
   
::(i) that it has incurred {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} consequent upon the {{efetaprov|Seller}}’s failure to {{efetaprov|Transfer}} {{efetaprov|Allowance}}s to it;  
::(i) that it has incurred {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} consequent upon the {{efetaprov|Seller}}’s failure to {{efetaprov|Transfer}} {{efetaprov|Allowance}}s to it;  
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::(iii) that it was unable to mitigate its {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} exposure,  
::(iii) that it was unable to mitigate its {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} exposure,  
:and shall provide the {{efetaprov|Seller}} with evidence: (A) that the {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}}, as applicable, was incurred by it; (B) that such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} was incurred as a result of the {{efetaprov|Seller}}’s failure to perform its {{efetaprov|Transfer}} obligation; and (C) of its commercially reasonable endeavours to mitigate its exposure to such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} as it has invoiced to the {{efetaprov|Seller}}; provided, however, that should the {{efetaprov|Seller}} elect to challenge the {{efetaprov|Buyer}} in respect of any of the above matters, then the burden for demonstrating: (A) that such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} was not actually incurred by the {{efetaprov|Buyer}}; (B) that such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} was not incurred by the {{efetaprov|Buyer}} as a result of the {{efetaprov|Seller}}’s non-performance; and/or (C) the insufficiency, lack of thoroughness or unreasonableness of such endeavours shall be on the {{efetaprov|Seller}} and, if § 22.3 (Expert Determination) is specified as applying in Part II of this {{efetaprov|Allowances Appendix}} the process by which such challenge will be determined shall be in accordance with the procedures set forth in § {{euaprov|22.3}} (''{{euaprov|Expert Determination}}'').  
:and shall provide the {{efetaprov|Seller}} with evidence: (A) that the {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}}, as applicable, was incurred by it; (B) that such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} was incurred as a result of the {{efetaprov|Seller}}’s failure to perform its {{efetaprov|Transfer}} obligation; and (C) of its commercially reasonable endeavours to mitigate its exposure to such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} as it has invoiced to the {{efetaprov|Seller}}; provided, however, that should the {{efetaprov|Seller}} elect to challenge the {{efetaprov|Buyer}} in respect of any of the above matters, then the burden for demonstrating: (A) that such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} was not actually incurred by the {{efetaprov|Buyer}}; (B) that such {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} was not incurred by the {{efetaprov|Buyer}} as a result of the {{efetaprov|Seller}}’s non-performance; and/or (C) the insufficiency, lack of thoroughness or unreasonableness of such endeavours shall be on the {{efetaprov|Seller}} and, if § 22.3 (Expert Determination) is specified as applying in Part II of this {{efetaprov|Allowances Appendix}} the process by which such challenge will be determined shall be in accordance with the procedures set forth in § {{efetaprov|22.3}} (''{{efetaprov|Expert Determination}}'').  
   
   
:(f) '''{{efetaprov|Later Mitigation of Recovered EEP or EEP Equivalent}}'''. To the extent an initially assessed and recovered {{efetaprov|EEP}} is later reduced and/or fully or partly returned or credited to the {{efetaprov|Buyer}} by a {{efetaprov|Relevant Authority}} for any reason whatsoever, only such reduced and finally assessed {{efetaprov|EEP}} shall apply. {{efetaprov|EEP}} recovered by the {{efetaprov|Buyer}} in the form of damages under this § 8 which are later reduced or returned to such {{efetaprov|Buyer}} shall be returned upon demand to the {{efetaprov|Seller}} who paid such damages, and the {{efetaprov|Buyer}} shall provide the {{efetaprov|Seller}} with prompt notification of any such reduction or return. Similarly, in the event the {{efetaprov|Seller}} has made the {{efetaprov|Buyer}} whole for an {{efetaprov|EEP Equivalent}}, and all or any portion of the underlying {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} upon which the {{efetaprov|Seller}}’s {{efetaprov|EEP Equivalent}} payment was based is later returned to the {{efetaprov|Buyer}} by its resale customer, the {{efetaprov|Buyer}} shall return an equivalent amount of its own {{efetaprov|EEP Equivalent}} payment to the {{efetaprov|Seller}}.
:(f) '''{{efetaprov|Later Mitigation of Recovered EEP or EEP Equivalent}}'''. To the extent an initially assessed and recovered {{efetaprov|EEP}} is later reduced and/or fully or partly returned or credited to the {{efetaprov|Buyer}} by a {{efetaprov|Relevant Authority}} for any reason whatsoever, only such reduced and finally assessed {{efetaprov|EEP}} shall apply. {{efetaprov|EEP}} recovered by the {{efetaprov|Buyer}} in the form of damages under this § 8 which are later reduced or returned to such {{efetaprov|Buyer}} shall be returned upon demand to the {{efetaprov|Seller}} who paid such damages, and the {{efetaprov|Buyer}} shall provide the {{efetaprov|Seller}} with prompt notification of any such reduction or return. Similarly, in the event the {{efetaprov|Seller}} has made the {{efetaprov|Buyer}} whole for an {{efetaprov|EEP Equivalent}}, and all or any portion of the underlying {{efetaprov|EEP}} or {{efetaprov|EEP Equivalent}} upon which the {{efetaprov|Seller}}’s {{efetaprov|EEP Equivalent}} payment was based is later returned to the {{efetaprov|Buyer}} by its resale customer, the {{efetaprov|Buyer}} shall return an equivalent amount of its own {{efetaprov|EEP Equivalent}} payment to the {{efetaprov|Seller}}.
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