What will eventuate with the larger corporations within Australia and perhaps overseas with COZ. They have already mentioned of a couple ann.s that are imminent regarding very large contracts.
Greenhouse gas trades are comprised of a combination of Immediate Settlement, Forwards and Options. Contracts to execute the trade are becoming standardised and usually are comprised of the following elements:
Description of the source of reductions including the methodology, technology or process improvement implemented to create greenhouse gas reductions;
Methodology and responsibility for verification of actual greenhouse gas reductions;
Statement of additionality qualification;
Description and warranties of the seller's claim to ownership of the reductions;
Description of the structure of the transaction including the type of purchase, the schedule of delivery and payment for reductions etc;
Discussion of warranties and risks including protections for non-delivery and non-payment, provisions for the type of reduction not being recognised by appropriate international and domestic regulatory bodies etc.
http://www.ieta.org/ieta/www/pages/index.php?IdSitePage=382
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