The Minister of Climate Change is required to update the overall limit, sub-limits, and price control settings every year. This is to ensure there is a five-year look ahead period, see Figure 1 below. For example, in August 2021 decisions were made to update the overall limit and price control settings to ensure they cover 2022-2026. The decisions are detailed in the tables below.
The Climate Change Commission will recommend NZ ETS unit limits and price control settings to the government every year, beginning in 2022.
If the Government adopts limits and price control settings that differ from the Climate Change Commission’s recommendations, it must publicly explain why.