It seems rather improbable that parties to the IETA agreement don’t make choice as regards the jurisdiction applicable to the contract in respect of the sale of emission greenhouse gas allowances. This is because the IETA Master Agreement (ETMA v. 3.0) is governed by and is to be construed in accordance with English law unless otherwise expressly provided for in the Part 1 of the Schedule 2 (Elections) to the Master Agreement (clause 14.7).

 

But there are also trades where other contract documentation is applied, and this documentation sometimes is restricted to, for instance, two pages only (without any master agreement). It is also theoretically possible (and sometimes occurs in practice) that there is no documentation at all – only transfer in the registry (the agreement is concluded orally and not confirmed in writing).

 

The question may arise in the said situations as to the law applicable to the contract.

 

The Regulation No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) is helpful in these ambiguities and the findings on jurisdiction are the first problems, which are to be resolved in any legal analysis relating to such contract.

 

It is a common practice that, in the course of restructuring, the groups of undertakings are closing non-effective installations and transfer the production to the most effective ones. Such an objective lies often at the origin of mergers and acquisitions in the capital market.