Trading Emissions agrees settlement with Dianneng

Board of Trading Emissions has announced that a settlement has been reached in respect of all of the arbitrations with subsidiaries of Yunnan Dianneng (Group) Holding Co. Ltd.

By way of background, in 2014, the Company received notices of arbitration in respect of claims that challenged the amendments that had been made to, in total, six Emissions Reductions Purchase Agreements (“ERPAs”), each between TEP and a project company owned by Dianneng. Each claimant is a counterparty to an ERPA with TEP. The associated claims originally amounted to, in aggregate, approximately EUR24 million, but were subsequently revised by Dianneng to an aggregate of approximately EUR26 million.

Under the terms of the settlement, no payments will be made by the Company to Dianneng or by Dianneng to the Company. Both parties have committed to ensure the withdrawal and/ or termination of all outstanding arbitrations. In addition, each of the ERPAs between the Company and Dianneng have terminated. Under the settlement, a number of administrative steps remain to be undertaken by both the Company and Dianneng.

TRE : Trading Emissions agrees settlement with Dianneng