46Replacement or cancellation of long‑term certified emission reductions

46 Replacement or cancellation of long‑term certified emission reductions

(1) This regulation applies if a registered holder of a long‑term certified emission reduction receives a written notice from the Regulator under: (a) subregulation 44(2); or (b) subregulation 45(2). Registered holder to instruct the Regulator (2) The holder must, by the replacement day, instruct the Regulator, in accordance with section 34 of the Act, to: (a) in the circumstances in regulation 44—transfer the particular units from the holder’s Registry account to the long‑term certified emission reduction replacement (storage reversal) account; or (b) in the circumstances in regulation 45—transfer particular units from the holder’s Registry account to the long‑term certified emission reduction replacement (non‑ certification) account. (3) The units mentioned in paragraph (2)(a) or (b) must be of a kind mentioned in paragraph 43(3)(a), (b), (c), (d) or (e) of the Act. Transfer to mandatory cancellation account (4) If the holder breaches the requirement to replace a long‑term certified emission reduction under subregulation (2), the Regulator must, before the cancellation day: (a) in the circumstances in regulation 44—transfer the specified number of the holder’s long‑term certified emission reductions for the project to the mandatory cancellation account for the relevant commitment period; or (b) in the circumstances in regulation 45—transfer all of the holder’s long‑term certified emission reductions for the project to the mandatory cancellation account for the relevant commitment period. (5) A failure by the Regulator to notify the holder within the time specified in subregulation 44(5) or 45(3) does not affect the validity of a transfer by the Regulator of a long‑term certified emission reduction to the mandatory cancellation account. Restriction on transfers (6) The registered holder must not instruct the Regulator to transfer any of the long‑term certified emission reductions it holds in relation to the project other than in accordance with subregulations (2) to (5) until the holder receives the notice mentioned in subregulation (7). (7) The Regulator must notify the holder if the Regulator receives notice from the international transaction log confirming that the holder’s long‑term certified emission reductions (held in relation to the project) have been replaced or cancelled.