In certain circumstances carbon abatement contracts may be terminated by the seller or the Clean Energy Regulator. If a contract is terminated prior to the delivery obligations being met, the funds that were allocated to that contract will be made available at a future auction. In some circumstances market damages for the balance of the contracted volume must also be paid.
Carbon abatement contracts can be terminated for a number of reasons including:
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.