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| This is all about the consequences should an EU Polluter not surrender the necessary {{euaprov|Emissions Allowance}}s to atone for its pollution by the annual deadline of 30 April prescribed in the {{euaprov|EU ETS}}. If your transaction does not hinge on the purchaser having EUAs in its hands by that date, then you can switch all this EEP business off.
| | {{Emissons EEP summ|euaprov}} |
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| 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.
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| ===“Specified as applicable”===
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| And herein lies the folly of over-labouring your drafting. We know what to do it {{euaprov|EEP}} is specified as applicable, and we know what to do if {{euaprov|EEP}} is specified as inapplicable — but what to do if the parties neglect to specify anything at all? On this, the agreement, for all its wretched over-articulation, is quite mute. We would like to think, [[The onus of proof is on the person making an existential claim|the onus of proof generally being on she who makes an existential claim]] and all, it would default to {{euaprov|EEP}} ''not'' applying — but the [[JC]] has been surprised at conclusions English Courts have reached on matters less contentious than that, so we would not like to say.
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| {{jc:M summ EUA Annex EEP Risk Period}}
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