Subdivision 1Closure

#### Subdivision 1—Closure 1302 An event is that equipment used to carry on an emissions‑intensive trade‑exposed activity is closed. 1303 (1) If the equipment mentioned in clause 1302 is closed and the requirement to relinquish carbon units under clause 1304 has taken effect, the number of free carbon units that must be relinquished is worked out in accordance with this clause. (2) Identify the total of: (a) the amount or volume of the relevant product that was: (i) produced using the equipment in the financial year (the first financial year) before the financial year in which the requirement to relinquish carbon units under clause 1304 took effect; and (ii) used in respect of an application for the issue of free carbon units under this program for the financial year in which the requirement to relinquish carbon units under clause 1304 took effect; and (b) the amount or volume of the relevant product that was: (i) treated as expected additional production in accordance with subclause 907(7); and (ii) to be produced using the equipment in the financial year in which the requirement to relinquish carbon units under clause 1304 took effect. (3) For each relevant product mentioned in subclause (2), identify the amount or volume of the relevant product that was, or is likely to be, produced using the equipment in the financial year in which the requirement to relinquish carbon units under clause 1304 took effect. (4) Work out the difference between the 2 amounts worked out under subclause (2) and (3) (the unused balance). (5) Work out the number of free carbon units that would have been issued for the current financial year on the basis of the unused balance and then subtract the number of carbon units that were not issued to a person in respect of the equipment because of subclause 902(8). (6) The result is the number of carbon units that must be relinquished. (7) However, if the number mentioned in subclause (6) is greater than the total number of units issued to the person for the activity in the financial year in which the requirement to relinquish carbon units under clause 1304 took effect, the number of carbon units that must be relinquished is the total number of units.