Improving how we govern the NZ ETS market
The Government is seeking feedback on the final elements of its proposals to improve governance of the market for New Zealand Units (NZUs).
One NZU represents one metric tonne of carbon dioxide equivalent, and can cover both emissions and removals. The NZU market includes auctions of NZUs by the Government in the primary market, as well as trading of NZUs between New Zealand Emissions Trading Scheme (NZ ETS) participants on the secondary market.
The NZU market is currently subject to a patchwork of regulation that leaves gaps. As the NZU market matures, it is important we ensure it retains the confidence of NZU market users, and that we reduce the risk of misconduct.
Using existing financial market frameworks, we can address market governance risks. The Government is seeking feedback on the impacts - for individuals and on the NZU market - of using these frameworks to regulate the NZU market.
Submissions closed on Monday 27 February 2023.