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Auction qualification

06 October 2016

Contents

​Important Information

The Clean Energy Regulator will hold the fourth Emissions Reduction Fund auction on Wednesday 16 November and Thursday 17 November 2016.

The documentasset:Guidelines for the fourth ERF auction provide information about how the fourth auction will be conducted.

For key dates for the upcoming auction see Planning for an auction.

 

Your auction qualification application is your offer to enter into a carbon abatement contract with the Clean Energy Regulator on behalf of the Commonwealth based on the code of common terms, as supplemented by:

  • the commercial terms of the offer provided in your auction qualification application,
  • the delivery terms of the offer that will be provided before the auction through your auction registration application, and
  • the financial terms of the offer that will be provided at the auction through your auction bid.

During auction qualification you will provide:

  • information about your project and contract
  • an indication of the total quantity of units you would agree to provide as part of the contract
  • nominations for authorised bidders and authorised representatives who can act on your behalf for the auction and contract, respectively.

You may nominate conditions precedent or be asked to provide evidence of the financial aspects of your project during auction qualification.

Standard conditions precedent wording accepted by the Clean Energy Regulator for projects with Conditional Declarations:

“Each condition (if any) specified under section 28(2) or 28A(2) of the Carbon Credits (Carbon Farming initiative) Act 2011(Cth) (the CFI Act) in each declaration made under section 27 of the CFI Act in relation to each project specified in Item 2 of these Commercial Terms, has been removed from the relevant declaration.”

Standard conditions precedent wording accepted by the Clean Energy Regulator for those that wish to delay the start date of their contract. 

“The date xx/xxxx/xxxx has occurred.”

Note: the conditions precedent expiry should be specified after this date to allow for notification of fulfilment to occur.  The 18 month maximum applies.​

Nominating conditions precedent

You may also nominate conditions precedent for the contract. Certain aspects of your project may not be finalised yet, such as project finance or planning or regulatory approvals. You may identify these as conditions precedent as part of the commercial terms. The primary obligations in the contract – the schedule for delivery and purchase of Australian carbon credit units – will only come into effect once you meet all applicable conditions precedent.

The Clean Energy Regulator will consider any conditions precedent expiry date up to 18 months from the contract date. Expiry dates should reflect the estimated time it will take to meet the conditions precedent.

To speed up the negotiations, you should refer in your conditions precedent the documentary evidence you will supply to the Clean Energy Regulator to confirm that the conditions have been met.

Authorised bidders and authorised representatives

You must nominate at least one authorised bidder and at least one authorised representative during auction qualification. Authorised bidders are appointed to act on behalf of both project participants and projects.

An authorised bidder has authority to:

  • apply to register the participant for Emissions Reduction Fund auctions for a project
  • submit the delivery terms for the offer for the project,
  • make and withdraw bids and provide the financial terms of the offer for the project at Emissions Reduction Fund auctions, and
  • withdraw auction registration.

An authorised representative will have the authority to provide binding notices on behalf of the seller under the Carbon Abatement Contract that is formed when the bid is successful, without needing to provide their proof of authority each time.

Who must sign the auction qualification form?

The auction qualification form and the authorised bidder form must be signed by the applicant (if an individual) or a representative of the applicant who is authorised to bind the applicant.

If the applicant is an Aboriginal and Torres Strait Islander company, these forms can be signed by:

  • two directors of the company
  • a director and a corporation secretary or,
  • if the company has only one director, that director alone.

If the applicant is a company registered under the Corporations Act 2001 (Cth), these forms can be signed by:

  • two directors of the company
  • a director and a company secretary or,
  • if the company is a proprietary company that has a sole director who is also the sole company secretary, that director alone.

If another person signs these forms on behalf of the applicant, documentary evidence such as extracted minutes of a board resolution, a power of attorney or a letter addressed to the Clean Energy Regulator from a legal counsel to the applicant will need to be attached. The document provided should confirm the authority of the signatory(ies) to enter into Emission Reduction Fund contracts on behalf of the applicant or to enter into contracts on behalf of the applicant of sufficient value to cover the anticipated value of the carbon abatement contract, and to sign all documents related to entering into Emissions Reduction Fund contracts or carbon abatement contracts on behalf of the applicant.

How do you complete auction qualification?

Auction qualification applications must be submitted through the Client Portal on this website.

When do you complete auction qualification?

Your auction qualification form must be received at least 20 business days before the date of the auction that you wish to participate in.

We will review the information you provide to us and notify you if you have qualified to take part in Emissions Reduction Fund auctions. Once you qualify for auctions you will be eligible to participate in all auctions over a twelve month period.

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