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Understanding contract delivery schedules

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12 October 2017

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:

  • the time it will take to set up your project and when it will start generating abatement
  • how much time you will need to allow for auditing and reporting on your project
  • the process to apply for Kyoto ACCUs, including allowing up to three months for units to be issued by the Clean Energy Regulator, and
  • how many deliveries of Kyoto ACCUs may be possible under a carbon abatement contract.

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.

Varying your contract delivery schedule

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.

Contract delivery period

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 five 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.

Contract delivery schedule calculator


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.

Important note

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.


Contract delivery schedule calculator

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Project

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Step 1: Project details

years
years
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Tip Each method may require specific reporting periods. Please check the method details for more information.

Step 2: Contract details

years
Tip This date is when your conditions precedent period will expire. It can be up to 18 months from the auction date.

Calculation summary

Unable to complete calculations. Only showing project timeline. Please address the errors above and calculate again to see the full calculations.

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Based on the information you entered, we've prepared an indicative timeline, and this calculation summary.

Overview

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.

Conditions precedent

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.

ACCU issuances

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.

These issuances make up [percentage]% of your total issuances.


[num] issuance(s) of ACCUs after your contract term. These ACCUs cannot be delivered under your current contract.

These issuances make up [percentage]% of your total issuances.

ACCU delivery milestones

Based on the calculated ACCU issuances, there [is/are] [num] possible contract delivery [milestone(s)].

Warning!

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.

Conditional declaration

Your project must be fully declared before you can apply for ACCUs.

Submitting your project report and applying for ACCUs.

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 penalties.

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.

Assumptions

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.

Want to give us feedback?

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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