NZ ETS unit settings and annual regulatory updates 2025

Closed 29 Jun 2025

Opened 28 May 2025

Contact

ETSconsultation@mfe.govt.nz

Results updated 19 Aug 2025

From 28 May to 29 June 2025, the Government consulted on proposals to update New Zealand Emissions Trading Scheme (NZ ETS) unit settings for the period 2026 to 2030. This included two webinars. 

Thank you to all who made a submission.  

A summary of submissions will be published on this page soon. Submitted responses, where consent has been given, will be published at the same time.  

Decisions on Unit Settings  

Decisions on unit settings for 2026 – 2030 have been made.

See Annual updates to emission unit limits and price control settings (Ministry for the Environment)

Decisions on Technical Updates 

Decisions on technical updates to NZ ETS regulations for 2026 have been made. 

The following technical updates will take effect on 1 January 2026: 

  • Unsold auction volumes rolled over to the next auction within a calendar year will not be made available until the allocated volume is sold. 
  • Update default emissions factors (DEF) for natural gas activities. 
  • Update DEFs for geothermal activities using the rolling average of the most recent three years’ emissions return data. 
  • Update tariff codes for SGGL regulations to align with the New Zealand Customs Service Working Tariff Document. 
  • Improve reporting accuracy for CO2 sold by natural gas mining. 
  • Correct errors in the UEF Regulations so that waste participants are required to use time series composition data when modelling emissions. 
  • Shorten the collateral window for auction participants to 3 working days. 
  • Correct a reference to the definition of a qualified person in the Unit Register Regulations. 
  • Remove the requirement for ETS participants to make a statutory declaration in the following situations: 
    • Removing a joint account holder  
    • Removing a primary representative  
    • Closing an account. 
  • Keep the reference to the geospatial information mapping standard current in the General Exemptions Order. 
  • Update cross references to enable fees and fines to be issued for non-compliance. 

Two updates included in the consultation document were not progressed. These were to amend reporting requirements for destroyed landfill gas, and amend the formula to include the oxidation factor in waste emissions. 

Overview

Consultation was held 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 a New Zealand Unit (NZU) to the government 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 2025 consultation document (PDF, 1.3MB)

Read the proposed changes to NZ ETS regulations 2025 consultation document (PDF, 677KB)

Read the technical annex (PDF, 579KB)