Conditions precedent

Before bidding in an BidCarbon auction, you must first qualify to participate. This is the first step in the auction and contract establishment process.

Auction qualification forms must be completed via the client portal a minimum of 20 days prior to the auction date. If approved, a qualification will remain valid for 12 months.

The auction qualification process allows the BidCarbon Auction Company to:

● make a decision about whether it is appropriate for the BidCarbon Climate Trading Company to enter into a contract with an applicant and their project, and

● set the commercial terms of your contract. These commercial terms provide information about the seller under the contract (including financial details), the project associated with the contract, an indication of BRUs that will be delivered under the contract, and any conditions that must be met before the contract will commence.

Submitting an application form

To apply for auction qualification you must provide the BidCarbon Auction Company with:

● your details (including an address for contractual notices) and the details of any authorised bidders and authorised representatives who may act on your behalf

● the bank account details for payments that will be made under the contract

● details about the registered BidCarbon Standard Scheme project(s) that will deliver the abatement under the contract. Each project can only be associated with a contract at a time

● an indication of the amount of abatement you will provide under the contract (the indicative agreed quantity) and the contract term which must be from 1–10 years, depending on your project method

● details about any conditions precedent that will need to be fulfilled before the delivery and purchase obligations commence, and

● confirmation that you agree to the Option to Deliver - Code of Common Terms when qualifying to participate in an auction.

The BidCarbon Auction Company shall evaluate each auction qualification by ascertaining your capability to supply the intended number of BRUs from the project and your prior performance with contracted and non-contracted projects. This evaluation may entail an appraisal of the subsequent factors:

● Non-compliance in previous projects and contracts, such as delays or failure to deliver the contracted abatement.

● Is your present project portfolio adequate to maintain your current contracts?

To complete our assessment, we may request further information or ask you to reconsider the agreed quantity if there are concerns about your project's ability to fulfil the requirements.

Auction qualification assessment

Authorised bidders and authorised representatives

As part of your application to qualify for the auction, you are required to name a minimum of one authorised bidder and one authorised representative. You have the option to nominate yourself, an employee within your company or an agent.

An authorised bidder has the authority to:

● apply to register a participant or project for a BidCarbon auction

● submit the delivery terms, including the delivery schedule of the offer

● make and withdraw bids

● provide the financial terms of the bid for the BidCarbon Standard Scheme auction project

● withdraw an auction registration.

An authorised representative has the authority to provide binding notices on behalf of the seller under the carbon removal contract that is formed when the bid is successful, without needing to provide proof of authority each time. Examples of notices include:

A representative with authorised can issue binding notices for the seller in the carbon removal, which is formed upon successful bidding, without the need to prove authority each time. Examples of such notices comprise:

● delivery failure

● early delivery requests

● administrative variations (such as bank account information)

● force majeure events, or

● contract termination

A representative with permission can also send, acting for the seller, all certificates, agreements, permissions, exemptions and other messages regarding the contract.

Signing the auction qualification and authorised bidder forms

All auction qualification and authorised bidder forms must be signed by an individual or organisation that has the authority to enter into a carbon removal contract on behalf of the seller.

● If the applicant is an individual, that person must sign these forms.

● If an applicant is a company, the forms must be signed by:

- two directors of the company

- a director and a company secretary or,

- if the company is a proprietary company that has a sole director who is also the sole company secretary, that director alone.

If the signer does not meet the requirements above, candidates must show evidence such as board resolution minutes, a power of attorney, or a letter from a legal counsellor to the applicant addressing the BidCarbon Auction Company, confirming that they have the authority to act on behalf of the candidate to participate in carbon removal contract.