Option to Deliver contract will be offered on a pilot basis for the tenth Emissions Reduction Fund auction on 25 and 26 March 2020. This option gives sellers the right, but not the obligation, to sell Australian carbon credit units to the Australian Government at a set price within a set timeframe.
Documentasset: New auction guidelines are now available for those interested in bidding for an Option to Deliver contract at auction. A new auction qualification form and an associated Code of Common Terms for this contract option will be made available shortly.
Documentasset: Code of Common Terms – version 3 and
Documentasset: auction guidelines remain in force for fixed delivery contracts.
For more information, see
participating in an auction.
Before participating in an Emissions Reduction Fund auction, you must consider and develop your carbon abatement contract delivery schedule.
A delivery schedule sets out the quantity of Kyoto Australian carbon credit units (ACCUs) that you will agree to deliver under contract, and on what dates you will deliver them within the contracts’ delivery period (the contract term).
When planning your delivery schedule you should consider:
These processes can mean that it can take up to nine months from the end of each of your project’s reporting period before units can be delivered. You should plan your delivery schedule accordingly. The contract allows a degree of flexibility to delivery Kyoto ACCUs early should the process takes less time.
Contract delivery schedules are determined at auction registration stage. Any variations to your delivery schedule must be negotiated with the Clean Energy Regulator in accordance with the Contract Code of Common Terms after this time.
The contract delivery period is the period during which carbon abatement contractors must deliver their Kyoto ACCUs to the Clean Energy Regulator.
The length of the delivery period is provided at auction registration and may vary according to the type of project that supports the contract. If your contract does not include any
conditions precedent then the delivery period begins ten business days after the final day of the auction. If your contract has one or more conditions precedent, the delivery period will generally commence on the conditions precedent expiry date (refer to the
documentasset::Code of Common Terms for your specific circumstances). Delaying the start of the delivery period using a condition precedent may allow you to generate and deliver additional abatement.
See more information about
documentasset:making sure your delivery schedule timing is right.
To help you establish a contract delivery schedule, the Clean Energy Regulator has developed an interactive delivery schedule calculator.
The calculator is a tool to assist participation in the Emissions Reduction Fund, and we value your feedback. You will be presented with a survey to complete at the end of the calculator summary results. The feedback we receive will inform ongoing improvements to the tool and future updates.
This calculator will provide you with an indication of optimal management of key project timeframes. The results from the calculator are not legally binding. They will only serve as a guide for you to consider whether your allocated time for some project processes is achievable. The results from the calculator should not be considered as assurance that your project will meet delivery milestones as required under contractual obligations.
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The project is registered and must meet certain conditions such as obtaining all consents or regulatory approvals before the project is eligible to claim ACCUs.
Date the project application is submitted through the Client Portal.
The period of time a project is able to apply to claim ACCUs.
The crediting period starts on:
All Emissions Reduction Fund participants must report on their projects. The length of the reporting period is nominated by the participant, and can be from six months to five years in length, depending on the method a project
is registered under.
Carbon abatement contracts are awarded through Emissions Reduction Fund auctions which are typically held over two business days.
Period ACCUs can be delivered under a carbon abatement contract to the Clean Energy Regulator. It starts from the date the contract commences (unless there is a conditions precedent agreement) until the date it expires and can
be a maximum of 7 or 10 years depending on the project.
This expiry date is the date by which any conditions must be fulfilled or waived under a conditions precedent agreement. If the conditions are not met by this date, up to 18 months from the contract start date, the contract will
Unable to complete calculations. Only showing project timeline. Please address the errors above and calculate again to see the full calculations.
Based on the information you entered, we've prepared an indicative timeline, and this calculation summary.
Your project is forecast to start [date] and end [date].
Note that the project is forecast to start after a 90 day project assessment period.
Your contract term is forecast to start [date] and end [date].
The contract term is forecast to start after a decision period of five business days to assess all auction bids.
Your contract delivery term is the full term of your contract.
You have not nominated a conditions precedent expiry date.
You can nominate a date by when the conditions precedent will be fulfilled or waived and the delivery obligations under your contract will start.
The conditions precedent expiry date can be up to 18 months from the contract term start date (five business days after the auction date) to allow additional time to obtain required approvals and consents.
More information on the conditions precedent is available on Understanding contracts.
You have nominated a conditions precedent that expires
on [date]. Your contract delivery period is forecast to start from this date.
Based on the information you entered, you may be eligible for the following Australian carbon credit unit (ACCU) issuances for your project:
[num] issuance(s) of ACCUs before or during your contract term. These ACCUs can be put towards your contract deliveries.
These issuances make up [percentage]% of your total issuances.
[num] issuance(s) of ACCUs near the end of your contract (within the last 2 months of your contract delivery term) may be delivered under your current contract depending on reporting
and assessment timeframes.
[num] issuance(s) of ACCUs after your contract term. These ACCUs cannot be delivered under your current contract.
Based on the calculated ACCU issuances, there [is/are] [num] possible contract delivery
You have [num] ACCU issuances that occur near the end or after your contract delivery term ends.
Market damages may apply if you do not deliver all ACCUs committed under your contract.
Your project must be fully declared before you can apply for ACCUs.
Show more information on conditional declaration
You have indicated that your project is conditionally declared.
You will need to fulfil all conditions and have your project declared fully and registered before the end of the first reporting period, and before applying for ACCUs.
If your project is still registered as a conditional project at the end of the first reporting period, you must still submit a project report. If you don’t, you will be in breach of your reporting obligations and subject to civil
Any ACCUs that a conditionally registered project is entitled to will be only be issued once the project is declared fully registered.
If you are having difficulty meeting your reporting obligations, fulfilling conditions, or you feel your project is running behind schedule, you should contact the Clean Energy Regulator as soon as possible to discuss your options.
These timeframes are calculated based on allowing [num] [month(s)] for you to prepare and submit your project
report and application for ACCUs, and 90 days for the Clean Energy Regulator to assess your report and issue the ACCUs to your Australian National Registry of Emissions Units (ANREU) account.
Time periods shown are indicative. You need to consider the type of project and length of reporting period specific to your circumstances.
This calculator is a pilot tool and we value your feedback. Please complete a short survey to let us know what you think. It should take 1–3 minutes.
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