(published September 2, 2010)

The U.S. Emissions Allowance Transaction Annex to the ISDA Master Agreement together with a confirmation template are intended to apply to transactions for the purchase, sale or exchange of an emissions product on a spot (“Immediately-Delivered Emissions Transaction”) or forward basis, or as option to purchase, sell or exchange of an emissions product. The new publication is structured as an annex to the ISDA Master Agreement Schedule.  Emissions products covered by the Annex include emissions of nitrogen oxide; emissions of sulfur dioxide and any emissions allowance or credit created under a US regional carbon dioxide trading schemes and voluntary emissions products. The list of emissions products covered by the Annex is designed to be updated as new emissions products, such as renewable energy credits, gain liquidity in the market.