Carbon abatement contracts

• Fixed price
• Set delivery schedule
• Flexible durations up to 10 years
• Ability to source ACCUs from anywhere.

• Each contract is linked to at least one ACCU project.
• Each project can only be the subject of one contract at a time.
• The agreed quantity of ACCUs is scheduled for delivery throughout the contract's duration.
• A project can be eligible for multiple fixed delivery contracts during its crediting period. This includes up to 10 immediate-delivery contracts and 3 short-term contracts per project.

You must ensure you can deliver the agreed quantity of ACCUs as per the delivery schedule.

A fixed delivery contract includes making good provisions. This means you must deliver the agreed quantity of ACCUs regardless of how the project is performing.

If your project can’t deliver the agreed quantity of ACCUs, you can source the difference from your other projects or the secondary market.

Conditions precedent are only available for fixed delivery contracts.

These are conditions that must be met or waived before the contract to deliver and purchase ACCUs becomes valid. Conditions precedent could include things like securing financing or obtaining regulatory approvals for a project. 

You need to make reasonable efforts to meet these conditions as soon as possible. Both parties must notify each other as soon as they become aware a condition has been met or waived.

If a conditions precedent is not met by the conditions precedent expiry date, the contract may terminate.

Conditions precedent aren't available for optional delivery contracts with no obligation to deliver ACCUs.

Fixed delivery contracts include some provisions for flexibility. You can:

• deliver ACCUs in instalments over the contract term
• deliver ACCUs sourced from any project, not just the project nominated at the auction
• negotiate conditions precedent for each contract (if applicable)
• deliver ACCUs early in the same financial year or across financial years with approval
• vary the delivery schedule subject to mutual agreement.

Find out more about how to manage a contract.

The fixed delivery exit arrangement gives you the option to make an exit payment instead of delivering ACCUs under your carbon abatement contract. The exit payment is calculated by multiplying the contract price by the quantity of outstanding ACCUs for the milestone.

This is a way to meet your contractual delivery obligations if there is an open exit window and your exit application is approved.

Find out more about fixed delivery exit arrangements.

• No obligation to deliver
• Fixed price
• ACCUs must be sourced from a single project (set at auction)
• Flexible durations up to 10 years

• The project associated with the optional delivery contract can be new or existing.
• The project cannot have been previously contracted under a fixed delivery contract.
• The project can't be connected to, or part of, a portfolio of projects used to fulfil existing contractual obligations.
• A project is only eligible for one optional delivery contract.

If you don’t deliver ACCUs against a scheduled milestone, your right to deliver ACCUs against that milestone lapses.

Milestone extensions are available in limited circumstances. They must be mutually agreed.

Optional delivery contracts are highly flexible. You are able to:

• deliver between zero and 100 per cent of a scheduled milestone without penalty
• structure ACCU deliveries in instalments over the contract term
• deliver ACCUs early in the same financial year or across financial years with approval.

Find out more about how to manage a contract.

The Code of Common Terms sets out the rights and obligations of the parties under the relevant contract. It is non-negotiable. 

The commercial terms set out:

• the seller's name and address
• the seller's Australian National Registry of Emissions Units (ANREU) account
• the seller's bank details
• the project(s) covered by the contract
• any conditions precedent (conditions precedent are not available for optional delivery contracts)
• the buyer's name and address
• the buyer's ANREU account.

The contract term is the duration of the contract in years. This is how long you must deliver ACCUs to us. It is also called a delivery period.

The delivery period continues until the contract expires. A contract expires when it has been completed or terminated. The contract will be completed when all scheduled ACCUs have been delivered and all payments have been made.

The delivery period may vary depending on the type of project. The maximum is 10 years.

You would have nominated the delivery period during auction qualification. 

There are 3 different contract durations.

Standard contract

Standard contracts have a duration of 7 to 10 years.

The most common standard contract length is 7 years. If your project has a crediting period of 10 years or more, you can apply for a 10-year contract term.

Short-term contract

A short-term contract has multiple deliveries over a period less than 7 or 10 years.

The delivery terms contain the delivery schedule. The delivery schedule sets out:

• how many ACCUs you will deliver
• the dates you'll deliver them.

Change your delivery schedule

Your delivery schedule would have been set at the auction registration stage. If you want to change it after that time, you need to negotiate a variation in accordance with the Code of Common Terms.

Find out more about how to vary a contract.

The financial terms set out:

• the price we will pay per ACCU
• date of the auction
• date of the contract.

The price was decided based on your bid at auction.