•       The Regulator may issue carbon units.

•       In a fixed charge year, a carbon unit may be issued for a fixed charge.

•       In a flexible charge year, a carbon unit may be issued as the result of an auction.

•       However, in the flexible charge years beginning on 1 July 2015, 1 July 2016 and 1 July 2017, some carbon units may be issued for a fixed charge (to act as a cap).

•       A carbon pollution cap limits:

               (a)     the total number of auctioned carbon units; and

              (b)     the total number of free carbon units issued in accordance with the Jobs and Competitiveness Program; and

               (c)     the total number of free carbon units issued to coal-fired electricity generators.

•       A carbon unit will have a vintage year that consists of a particular financial year.

•       If a carbon unit was not issued for a fixed charge, the unit is transferable.

•       Entries may be made in Registry accounts for carbon units.