At each auction, we offer a number of flexible contracting options to encourage project development and financing options, such as partial contracting. Partial contracting provides you with the opportunity to bring forward part of the expected abatement from your project in to the auction process.
In addition to existing contracting arrangements, we are also open to entering into a contract with you at auction, for a project that is contingent on you entering into a further contract with a third party. Doing this provides you the security of a carbon abatement contract while allowing you to seek opportunities to sell the remaining abatement to a third party. This will help to reduce risk associated with the development of a project, as well as broadening the availability of Australian carbon credit units (ACCUs) to the private market.
The third parties may include a financier, an organisation seeking to acquire ACCUs to offset their emissions for carbon neutrality purposes, or a safeguard entity looking to meet their liability through the surrender of units.
The proposed conditions precedent for this is:
Using this conditions precedent provides you (the seller), up to 18 months to enter into a contract to sell the remaining abatement. If at the end of this time you have been unable to find a buyer for the remaining ACCUs, you may allow the contract to lapse, or waive the conditions precedent if you still wish to retain your contract.
We encourage participants that are interested in participating in an auction and contracting to a third party, to contact the Clean Energy Regulator to discuss the specifics of what they would like to do, and find out what types of information may assist their application.
Interested participants can contact the Clean Energy Regulator at email@example.com or phone 1300 553 542.
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.