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Delivery of units

11 October 2016

ERF

Contents:

You need to ensure you have left sufficient time to be issued your units in order to meet the delivery schedule set out in the contract. The assessment period for project offsets reports and the issuance of Australian carbon credit units (ACCUs) is legislated as 90 days from receipt of a complete and correct application. Sellers are advised to allow sufficient time for submitting these reports to and processing by the Clean Energy Regulator. Giving due consideration to these timeframes will reduce unnecessary delays in the issuance of ACCUs needed to meet contracted delivery obligations.

Emissions abatement is purchased in the form of Kyoto ACCUs. Each ACCU represents one tonne of verified carbon emissions or equivalent abatement achieved.

On each scheduled delivery date the seller must sell to the Clean Energy Regulator the quantity of ACCUs outlined in the delivery schedule in their contract. The transaction must occur directly from the seller’s Australian National Registry of Emissions Units (ANREU) account to the Clean Energy Regulator’s ANREU account.

Delivery is deemed to have occurred when the ACCUs are received in the Clean Energy Regulator’s ANREU account.

The seller must send the Clean Energy Regulator an invoice in relation to each delivery made.

It is the seller’s responsibility to take all reasonable steps to ensure they have been issued units or otherwise acquired units to sell to the Clean Energy Regulator on the scheduled delivery date.

How to deliver units under a carbon abatement contract

ANREU users who have an Emissions Reduction Fund carbon abatement contract must ensure they are familiar with the process for transferring units ahead of contract milestones, to deliver the required amount of carbon credit units on time.

View how to transfer Australian carbon credit units in the ANREU.

Early delivery of units

You can deliver all or part of a quantity of ACCUs due on a delivery date ahead of the due date.

The Clean Energy Regulator will accept an early delivery of ACCUs if it is within the same financial year as the scheduled delivery date.

To deliver your units before the due date, you should notify us at least 5 days before you deliver the units and provide information about:

  • the quantity of ACCUs that will be delivered early
  • the total number of ACCUs that should be delivered at the scheduled delivery point, and
  • the day that you will transfer the ACCUs.

The Clean Energy Regulator may accept an early delivery in a different financial year to the scheduled delivery. To deliver ACCUs early in a different financial year, you must give us at least 20 business days’ notice and provide information about:

  • the quantity of ACCUs that will be delivered early
  • the total number of ACCUs that should be delivered at the scheduled delivery point, and
  • the day that you will transfer the ACCUs.

Before you transfer the ACCUs across financial years, you must ensure that we will accept the early delivery of ACCUs.

Non-delivery of units (delivery failure)

You must deliver the quantity of ACCUs on the dates that they are due according to the delivery schedule in your contract.

If you are not able to deliver the number of ACCUs required by a scheduled delivery point from your own project, you may be able to purchase ACCUs on the secondary market to allow you to deliver your scheduled quantity and fulfil your obligations.

If you are aware that you are not likely to meet your scheduled delivery quantity by the scheduled delivery date you must tell the Clean Energy Regulator as soon as possible.

If a scheduled delivery is not made in full it is considered a delivery failure and the difference between the quantity delivered and the quantity due is a delivery shortfall.

Following notice of a delivery failure both parties must make reasonable endeavours to agree on a revised delivery schedule. If the revised delivery schedule is reasonable and credible it will be agreed. The total amount of ACCUs to be delivered under the contract will not be revised. Further, the contract period will not be extended and the final scheduled delivery date will not be postponed past the contract period.

Secondary markets

Project proponents in the Emissions Reduction Fund (ERF) are able to buy and sell Australian carbon credit units (ACCUs). In order for project proponents to meet their ERF contractual obligations, all ACCUs delivered to the Clean Energy Regulator must be Kyoto ACCUs. 

​In addition to ensuring ACCU integrity through scheme compliance with legislation and regulations, the Clean Energy Regulator assists market participant by providing them with information and educational resources. The Clean Energy Regulator does not regulate the secondary market for ACCUs ​or provide advice on the operation of the secondary market.


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