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Force majeure

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12 October 2017

Force majeure refers to events that are beyond your control, or events that the Clean Energy Regulator has determined all reasonable efforts cannot be overcome, and result in you failing to fulfil your obligations under carbon abatement contract. This may include natural disasters such as flooding, drought and fire.

If your project is affected by a force majeure event, you must notify the Clean Energy Regulator of:

  • the details of the event or circumstance
  • the steps being taken to remove or mitigate its effects, and
  • an estimate of the expected duration.

If your project is affected by force majeure and you cannot deliver abatement as contracted, you may be able to suspend, reduce or end your delivery obligations.

Varying the delivery schedule and agreed quantity

If the force majeure has prevented, or will prevent, deliveries of Kyoto Australian carbon credit units, you can request a revision to your delivery schedule. If the revised delivery schedule is agreed to by the Clean Energy Regulator, the force majeure is considered to have been overcome and the revised delivery scheduled is binding. The new delivery schedule can either:

  • allow you to meet your obligations at a later date, or
  • reduce the agreed quantity if you can demonstrate that you can no longer deliver the full amount.

Contract termination

If the force majeure event continues for more than 365 days, the contract may be terminated by either party.

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