Strengthening ETS Market Governance
The Government is improving the market governance of the Emissions Trading Scheme (ETS).
The ETS is our key tool for reducing emissions. To function well, the ETS market must be credible and have adequate governance in place.
The changes improve trading information availability, provide clear market conduct standards, set up the Ministry for the Environment’s monitoring powers and add the Financial Markets Authority (FMA) as the agency that oversees market conduct.
These changes have been carefully designed as the lowest cost and lightest touch to addressing key market governance risks.
In line with this approach and in response to stakeholder feedback, we’ve discounted costly and burdensome options, such as establishing a government-funded exchange/clearing house.
You can see details of the key changes here and in the Beehive media release.