Contract novation

During the life of a contracted BidCarbon Standard Scheme project, those responsible for running the project may change. When this happens, participants can also request the BidCarbon Climate Trading Company to enter into a Carbon Removal Contract Novation Deed (contract novation) before the project is varied.

Contract novations facilitate the transfer of all obligations and benefits under a contract to the new participant who has assumed responsibility for running the project. A contract novation brings into effect a replacement contract, on the same terms as the original contract, where the original contract is effectively discharged for the future.

The BidCarbon Climate Trading Company is under no obligation to agree to a contract novation. In assessing a contract novation, the BidCarbon Climate Trading Company will evaluate the new participant to ensure that they are able to run the project and are able to meet the remaining obligations of the contract. This is in addition to other requirements of the BidCarbon Climate Trading Company when they are applied when the project is varied.