Feedback welcome on updates to auction and regulation settings for the NZ ETS
The Government is seeking feedback on its annual review of auction settings and other regulations for the New Zealand Emissions Trading Scheme (NZ ETS).
This consultation seeks feedback from mandatory and opt-in participants in the NZ ETS, and anyone with an interest in the NZ ETS.
Consultation documents
- Annual updates to NZ ETS limits and price control settings for units 2024
- Proposed changes to NZ ETS regulations 2024
Correction note:
The document “Annual updates to NZ ETS limits and price control settings for units 2024" consultation document was first published on 15 May 2024. An updated version was published on 27 May 2024 to correct an error in the overall assessment of options in table 11: Options comparison for trigger prices.
Clarifications are also made to make it clear that the calculation of the base auction volume in Step 7 is based on the options recommended by the Climate Change Commission.
Have your say
The consultation ran from Wednesday 15 May to Friday 14 June.
The NZ ETS supports Aotearoa New Zealand to meet its emissions reduction goals by putting a price on greenhouse gas emissions. People carrying out certain activities must provide to the Government a New Zealand Unit (NZU) for every tonne of climate pollution they emit.
Participants in the NZ ETS can purchase NZUs through Government auctions held four times per year.
This consultation is on annual updates to the New Zealand Emissions Trading Scheme (NZ ETS) unit settings for the period 2025–29.
NZ ETS limit and auction price control settings for units are set in regulations for five years in advance. These need to be reconsidered, and added to, every year.
- Unit limits — help cap the supply of units into the NZ ETS over time. This helps to keep emissions in line with greenhouse gas reduction targets.
- Price control settings — set upper and lower price controls for NZUs at auction.
This consultation seeks feedback from mandatory and opt-in participants in the NZ ETS, and anyone with an interest in the NZ ETS.
- Government officials will analyse feedback from the consultation.
- The Government will finalise updates to the NZ ETS regulations by the end of September 2024.
- Updated unit settings would not apply until the first auction of 2025.
Watch the webinar held on 28 May [Youtube]
Watch the webinar held on 29 May [Youtube]
The slides used to support the webinars held on 28 and 29 May are available here.