Course 05 of 20 · Emissions and Carbon Desk Academy

Compliance Obligations & Allowance Procurement

Stage B, Obligation, custody and counterparty assessment. Level 3 of 10.

Translating a regulated entity's obligation into an allowance procurement plan and a surrender calendar.

126 chapters · 12 modules · every chapter one 8 to 10 minute explainer · builds on: Course 01, Course 02, Course 03

Enrol or enquire See the 126 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

12 modules · 126 chapters

Open any module for its full chapter list, in teaching order.

M0 The Obligation a Regulated Entity Carries Ch 1-10
  1. An Obligation Is a Liability, Not a Cost Line
  2. Finding the Legal Entity That Owes the Tonnes
  3. One Group, Many Permits
  4. Aircraft, Ship and Fuel Supplier Duties Compared
  5. A Statutory Duty Against a Voluntary Target
  6. The Emitting Year and the Buying Year Are Different
  7. What Counts as Discharging the Duty
  8. The Obligation Seen From the Regulator's Desk
  9. Why Procurement Planning Exists At All
  10. The Vocabulary of Compliance Buying
M1 Sizing the Obligation for the Year Ch 11-21
  1. From Production Plan to Expected Tonnes
  2. The Forecast Is Not the Verified Number
  3. Rebuilding the Estimate as the Year Runs
  4. Dispatch Risk Inside the Emissions Estimate
  5. The Duty of a Plant That May Not Run
  6. Growth, New Units and the Step Change
  7. Closure, Mothballing and Falling Tonnage
  8. Building the Range, Not the Point
  9. How Much Over-Cover Is Defensible
  10. Projecting Tonnage for a Fuel Supplier
  11. Where the Tonnage Estimate Gets Challenged
M2 Free Allocation as a Supply Line Ch 22-31
  1. Reading an Allocation Decision as a Delivery Schedule
  2. Units Credited Before the Year, or After It
  3. Allocation Is Rarely the Whole Duty
  4. Activity Level Reporting and Clawback
  5. When Expected Units Fail to Appear
  6. The Leakage Classification Argument and Its Assumptions
  7. Phase-Down Paths and the Shrinking Free Line
  8. Bought Units Are Not Received Units
  9. Entitlement for a New Entrant
  10. The Entitlement Register an Operator Should Keep
M3 Holdings, Banking and the Net Position Ch 32-41
  1. The Net Short Calculation
  2. Counting Holdings by Account, Not by Group
  3. Carrying Units Into the Next Year
  4. Where Carry-Forward Is Capped or Expires
  5. Borrowing Against Next Year, and Why It Is Rare
  6. Vintage and Eligibility Inside the Inventory
  7. The Position Statement a Compliance Desk Publishes
  8. Cover Ratio as a Managed Number
  9. Reconciling Inventory to the Registry Balance
  10. Being Long: The Problem Nobody Plans For
M4 Eligible Units and Substitution Limits Ch 42-50
  1. What a Scheme Will Accept at Surrender
  2. Allowances and Credits Are Not Interchangeable
  3. Converting a Usage Ceiling into a Purchase Limit
  4. Qualitative Restrictions on Credit Use
  5. Cost-Containment and Reserve Units
  6. Substituting Credits Where a Scheme Permits It
  7. Linked Schemes and Mutual Recognition
  8. Confirming Eligibility Before You Pay
  9. When Eligibility Changes After Purchase
M5 Building the Procurement Plan Ch 51-63
  1. What a Procurement Plan Actually Contains
  2. Buying Early, Late or Evenly
  3. Averaging In as a Default Policy
  4. The Case for Covering the Known Floor First
  5. Deciding the Channel Split
  6. Sizing a Clip Without Moving the Market
  7. Buying Ahead of Entitlement
  8. Buying While the Figure Is Still Unverified
  9. Writing the Trigger Rules
  10. Limits That Keep the Plan Honest
  11. The Plan Under a Fixed Budget
  12. Two Schemes, One Obligated Group
  13. Procurement for an Aircraft Operator
M6 Executing Allowance Purchases Ch 64-74
  1. Buying Spot Units Through a Cleared Venue
  2. Buying Bilaterally Under a Master Agreement
  3. Delivery Against Payment for Units
  4. Value Added Tax and the Fraud That Changed It
  5. Onboarding a Trading Counterparty
  6. Using a Broker or an Agent
  7. Fixing a Future Cost With a Forward Purchase
  8. The Purchase Audit Trail
  9. Settlement Breaks and Failed Deliveries
  10. Buying Through Group Treasury or a Shared Service
  11. Executing Against a Tight Deadline
M7 The Surrender Calendar, Scheme by Scheme Ch 75-86
  1. What a Surrender Calendar Is For
  2. The Critical Path From Meter to Surrender
  3. The EU ETS Annual Cycle
  4. The UK ETS Cycle and Where It Differs
  5. California's Compliance Periods and Triennial True-Up
  6. The Regional Greenhouse Gas Initiative Control Period
  7. New Zealand, Korea and China: Three More Calendars
  8. One Schedule for a Group With Mixed Exposure
  9. Verification as a Timetable Dependency
  10. Why the Last Day Is Not Your Deadline
  11. Reconciling After the Surrender
  12. The Calendar as a Governance Artefact
M8 Cost, Budget and Internal Allocation Ch 87-96
  1. Turning Tonnes Into a Budget Line
  2. The Provision Against an Undischarged Duty
  3. Blended Cost of the Unit Inventory
  4. Charging Carbon Cost to the Unit That Caused It
  5. An Internal Carbon Price Is Not the Market Price
  6. Passing Compliance Cost Into an Output Price
  7. Funding the Purchase Programme
  8. What It Costs to Hold Units You Already Own
  9. Reporting Compliance Cost to the Board
  10. Where the Voluntary Budget Sits Beside This One
M9 When the Plan Breaks Ch 97-107
  1. Short of Units at the Deadline
  2. The Penalty for Failing to Surrender
  3. Publication and the Reputational Consequence
  4. A Verifier Adjustment That Lands Late
  5. Losing an Entitlement You Planned Around
  6. A Counterparty That Cannot Deliver
  7. Rule Change Inside the Compliance Year
  8. A Plant Sale That Moves the Duty
  9. Insolvency of an Obligated Affiliate
  10. Over-Cover After an Unexpected Shutdown
  11. The Contingency Written in Advance
M10 Governance, Authority and Assurance Ch 108-117
  1. The Buying Mandate and Who Grants It
  2. Separating the Decision, the Trade and the Surrender
  3. The Second Pair of Eyes on a Surrender Instruction
  4. Delegated Authority When Price Moves
  5. What an Internal Auditor Will Ask
  6. What the Emissions Verifier Will Not Check
  7. Policy, Procedure and the Document Set
  8. Training the People Who Are Not Traders
  9. Conduct Rules a Compliance Buyer Must Respect
  10. Insourcing Against Outsourcing the Function
M11 A Worked Entity and the Limits Ch 118-126
  1. A Worked Obligation, Part One: Sizing the Short
  2. A Worked Obligation, Part Two: The Purchase Programme
  3. A Worked Obligation, Part Three: Surrender and Variance
  4. The Same Entity Receiving Nothing Free
  5. Defending the Plan Under Challenge
  6. Where This Material Has Deliberately Simplified
  7. What a Procurement Plan Cannot Do
  8. Where the Compliance Thread Runs Next
  9. The Handover Note to Your Successor

The brochure gives each of these 126 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 5 of twenty

It stands alone, and it is also the entry point to the Emissions and Carbon Desk Academy pathway.

Enrol or enquire See the whole pathway