Eligibility for industrial allocation and the quantity of units currently allocated per unit of EITE product is currently based on historical data from 2006-09.
Since then, changes to industry composition, business as usual improvements, and significant investments in fuel switching and other emissions improvements mean current allocation settings may not be representative of an activity’s national average emissions intensity.
The Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 amended the Act to allow the update of industrial allocation settings for EITE activities. This will enable the Government to update regulations for industrial allocation settings for activities where the current allocation settings are no longer representative of its national average emissions intensity.
The collected data will be used to calculate current emissions intensities and allocative baselines for each of the activities, based on the weighted average of all firms conducting each specific activity in New Zealand. This data collection exercise will not change existing decisions on eligibility.