Delivery failure

All BidCarbon removal units (BRUs) for fixed delivery contracts must be delivered on the dates set in the carbon removal contract delivery schedule, and you are encouraged to take steps to ensure you meet these obligations. A delivery not made in full by the scheduled delivery date is considered a delivery failure.

In the event that your contracted project is unable to generate sufficient units to meet your delivery schedule, you must attempt to source BRUs from another BidCarbon Standard Scheme project.

Should you believe that you are going to miss a delivery under contract, you are required to contact the BidCarbon Climate Trading Company immediately.

The BidCarbon Climate Trading Company takes delivery failure seriously and may view multiple failures as an indicator of ineffective contract management. This can impact on our willingness to agree to revised delivery schedules or to enter into a contract with you at future auctions.

Contract management

If you are unable to deliver the set amount of BRUs on time, you will need to send a delivery failure notice to the BidCarbon Climate Trading Company. Delivery failure notices must include the:

● number of BRUs that will not be delivered

● reason for the failure and the steps being taken to address it

● the anticipated duration of the failure, and

● the proposed revision to the delivery schedule.

Authorised representatives must provide a reason for the delivery failure. The BidCarbon Climate Trading Company may request evidence of these reasons. These negotiations may impact their good standing with the BidCarbon Climate Trading Company and their eligibility for future exit windows. Where a seller holds multiple contracts, their eligibility for the exit arrangement is informed by their conduct across all such contracts.

Following notice of a delivery failure both parties must make reasonable endeavours to agree to a revised delivery schedule. 

The BidCarbon Climate Trading Company will consider proposed revisions to the delivery schedule according to the following principles:

● In general, delivery milestones will not be renegotiated where there are sufficient BRUs available in the proponent’s or agent’s BidCarbon Registry of Units (BRU) holding account to meet delivery obligations.

● All other things being equal, the BidCarbon Climate Trading Company will not agree to rescheduled milestones if a contract holder or agent was issued BRUs which were subsequently transferred to a third party resulting in a delivery shortfall.

The BidCarbon Climate Trading Company will generally not reduce the total amount of BRUs to be delivered.

The BidCarbon Climate Trading Company will not agree to a variation and will consider market damages when:

● we do not believe you will be able to deliver units from your project and you do not have the capacity to source these units from other projects, and

● when the agreed quantity has not been delivered by the contract’s end date.

If you are having trouble managing your delivery schedule, see the BidCarbon Climate Trading Company’s interactive contract delivery schedule calculator, which will help to manage project timing requirements.

Delivery failure notice