Glossary entry

Offset Provider

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Definitions

Offset Provider

Offset Provider means a provider of carbon credits or voluntary emission reduction credits that relate to: 

(i) a project that has been verified in accordance with [insert name of voluntary standard]; or

(ii) a United Nations Framework Convention on Climate Change (UNFCCC) clean development mechanism (CDM) [or [successor/ equivalent] UNFCCC mechanism] project.

Drafting notes

See TCLP’s Discussion Document on Offsets, Insets and Carbon Credits  for more information about carbon credits purchased from regulated and voluntary markets.

The credits that can be used under the EU Emissions Trading Scheme are specified in articles 58-61 of the Fifth Registries Regulation (Commission Regulation (EU) No 389/2013) and Article 11a(8) of the EU ETS Linking Directive 2004 (Directive 2004/101/EC), which was replaced by the EU ETS Amending Directive 2009 (Directive 2009/29/EC). Using this option would mean Emission Reduction Units (ERUs) from UNFCCC Joint Implementation (JI) projects would be permissible for use as offsets.

Application

Corporate climate policies, supply chain agreements, climate laws, investment and finance documentation.

Offset Provider is used in the following TCLP clauses:

[Callum & Theo’s Clause] Climate Standard Transaction Terms; 

[Emma’s Clause] Green Residential Lease Clauses; and 

[Matthew’s Clause] Late Payment – Green Interest Remedies.