NZ ETS Unit Settings and Annual Regulatory Updates 2024

Closed 14 Jun 2024

Opened 15 May 2024

Overview

Consultation was sought on the Government’s annual review of auction settings and other regulations for the New Zealand Emissions Trading Scheme (NZ ETS).  

The NZ ETS supports Aotearoa New Zealand to meet its emissions reduction goals by putting a price on greenhouse gas emissions. Businesses must provide to the government a New Zealand Unit (NZU) for every tonne of climate pollution they emit.  

Participants in the NZ ETS can purchase NZUs through government auctions held four times per year. Auction settings are reviewed every year to ensure the NZ ETS is working well to support climate targets.  

  • Price control settings set a minimum and maximum price for NZUs at auction.  
  • Unit limit settings help “cap” the supply of units into the NZ ETS over time. This helps to keep emissions in line with greenhouse gas reduction targets. 

Read the annual updates to NZ ETS limits and price control settings for units 2024 consultation document [PDF, 711KB]

Read the proposed changes to NZ ETS regulations 2024 consultation document [PDF, 946KB]

Correction note:

The document “Annual updates to NZ ETS limits and price control settings for units 2024 consultation document” was first published on 15 May 2024. An updated version was published on 27 May 2024 to correct an error in the overall assessment of options in table 11: Options comparison for trigger prices.

Clarifications are also made to make it clear that the calculation of the base auction volume in Step 7 is based on the options recommended by the Climate Change Commission.

Webinars

Watch the webinar held on 28 May [Youtube]

Watch the webinar held on 29 May [Youtube]

The slides used to support the webinars held on 28 and 29 May are available here.

What happens next

This consultation closed on 14 June 2024.

Once we have considered submissions, we will put final proposals to the Minister of Climate Change and Cabinet for consideration. Following Cabinet decisions, any new regulations or amendments to existing regulations will be published in the New Zealand Gazette by 30 September 2024 and will come into force from 1 January 2025.

If you have any further questions, please email etsconsultation@mfe.govt.nz.