Template:M summ EUA Annex EEP: Difference between revisions

The {{euaprov|Excess Emissions Penalty}} is made flesh in [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32003L0087 Article 16] of the [[EU ETS Directive|EU ETS directive]].

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'''Article 16: Penalties'''<br>

:4.  During the three-year period beginning 1 January 2005, Member States shall apply a lower [[Excess Emissions Penalty - Emissions Annex Provision|excess emissions penalty]] of EUR 40 for each tonne of carbon dioxide equivalent emitted by that installation for which the operator has not surrendered allowances. Payment of the [[Excess Emissions Penalty - Emissions Annex Provision|excess emissions penalty]] shall not release the operator from the obligation to surrender an amount of allowances equal to those excess emissions when surrendering allowances in relation to the following calendar year.}}

Note: the [[Excess Emissions Penalty - Emissions Annex Provision|excess emissions penalty]] falls on those operators who actually emit carbon dioxide. To the extent you are a financial, and your business is in the trading, liquidity and market making of [[EUA]]s themselves, and not offsetting real-world carbon emissions they are designed to control, then {{euaprov|EEP}}s are not likely to come high up your list of priorities. That being said, there ''is'' an indirect implication for financial-only counterparties if they [[Failure to Deliver - Emissions Annex Provision|fail to deliver]] to operators in time so operators can surrender to the authorities by the {{euaprov|Reconciliation Deadline}}, since the former’s settlement failure brings a real world penalty charge on the later. Therefore you may wish to consider the otherwise rather perplexing {{euaprov|Failure to Deliver}} language in the {{euaprov|Annex}} dealing with that contingency.