41Commitment period reserve

41 Commitment period reserve

(1) For subsection 41(1) of the Act, the Regulator must not give effect to an instruction mentioned in subregulation (2) or a request mentioned in subregulation (3) if the circumstances mentioned in subregulation (4) apply. (2) The instruction is: (a) an instruction under section 35 of the Act to transfer a Kyoto unit from a Registry account to a foreign account; or (b) an instruction under section 154 of the Carbon Farming Act to transfer a Kyoto Australian carbon credit unit to a foreign account. (3) The request is a request under section 65 of the Act to transfer a Kyoto unit from a Registry account to the voluntary cancellation account for the relevant commitment period. (4) The circumstances are that the transfer would result in the total number of Kyoto units for the relevant commitment period in any of the following Registry accounts falling below the commitment period reserve: (a) all Registry accounts kept in the name of an account holder other than the Commonwealth of Australia; (b) all Commonwealth holding accounts; (c) the retirement account for the relevant commitment period.