From 19 May to 16 June 2023, the Government consulted on proposals to update New Zealand Emissions Trading Scheme (NZ ETS) unit settings for the period 2024 to 2028. This included two webinars held on 24 and 29 May 2023.
Thank you to all who made a submission.
Read the summary of submissions [PDF, 660 KB]
Decisions on unit settings for 2024 – 2028 have been made alongside a reconsideration of settings for 2023 – 2027.
These are detailed in the tables below, including auction and cost containment reserve volumes and the auction price control settings. The published auction calendars for 2023 and 2024 are being updated to reflect the decisions.
Note: Auction volumes are derived by subtracting the cost containment reserve volume from the New Zealand units available by auction.
Changes to the unit supply and price settings will operate from the 6 December 2023 auction.
| Unit limits (millions) | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|---|
| NZUs available by auction* | 23.0 | 21.9 | 19.7 | 17.2 | 15.0 | 12.3 |
| Approved overseas units used | 0 | 0 | 0 | 0 | 0 | 0 |
| Overall limit on units | 29.2 | 28 | 25.8 | 23.2 | 20.9 | 18.1 |
* The total number of NZUs available to be sold at auction includes the reserve amount of New Zealand units, see table below.
|
|
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
|---|---|---|---|---|---|---|
|
Cost Containment Reserve volume (millions of NZUs) |
|
|
|
|
|
|
|
Tier 1 |
8.0 |
2.8 |
2.6 |
2.3 |
2.1 |
1.9 |
|
Tier 2 |
0 |
4.9 |
4.5 |
4.2 |
3.8 |
3.4 |
|
Total |
8.0 |
7.7 |
7.1 |
6.5 |
5.9 |
5.4 |
|
Cost Containment Reserve prices (NZD) |
||||||
|
Tier 1 |
$173 |
$184 |
$194 |
$205 |
$215 |
$226 |
|
Tier 2 |
$216 |
$230 |
$243 |
$256 |
$269 |
$283 |
|
Auction reserve price (NZD) |
$60 |
$64 |
$68 |
$72 |
$75 |
$79 |
View submitted responses where consent has been given to publish the response.
The NZ ETS is a key tool in the government’s climate change response toolbox. It supports Aotearoa New Zealand to meet its emissions reduction goals by putting a price on greenhouse gas emissions.
Unit settings are updated annually to ensure the NZ ETS remains an effective tool to reduce greenhouse gas emissions.
This consultation is on annual updates to the New Zealand Emissions Trading Scheme (NZ ETS) unit settings for the period 2024–28.
This is the third year that these settings will be updated.
Read the full consultation document [PDF, 1 MB]
Correction note: This document was first published on 19 May 2023. An updated version was published on 24 May 2023 to correct minor errors in the calculation of some figures in table 13: Auction reserve price under each option and table 16: Cost containment reserve trigger price options. The relevant numbers have now been corrected and do not materially affect the options presented.
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