This request and release is about vote Environment and NZU.
Response date
21 October 2021
Type
Departmental
This request and release is about vote Environment and NZU.
Response date
21 October 2021
Type
Departmental
Details of the request
In the 2021/22 estimates for the Vote, the allocation of New Zealand Units (NZUs) reflects the changes in the volume of units allocated and the forecast price of units. It also includes the loss on sale of NZUs. Both items are referenced to M12 and A15.
Could you please advise:
• The nature of the liabilities being recognised and the accounting standards used to quantify them?
• How the liabilities reconcile to New Zealand’s obligations under both the Kyoto and Paris agreements?
• How the liabilities reconcile to setting of the overall limit (also known as the 'cap') on NZUs supplied to the market, accepting that the cap does not limit NZUs provided for emissions removals
• The basis on which NZU prices are forecast?
• Whether there are other elements of the issue, trading and redemption of New Zealand Units that impact on other elements of this Vote or others?