NZ ETS unit settings and annual regulatory updates 2025

Results updated 19 Feb 2026

Correction to default emission factors for natural gas and geothermal resources for 2026

The Ministry for the Environment has found errors in the default emissions factors (DEFs) set for natural gas and geothermal resources under the New Zealand Emissions Trading Scheme (NZ ETS). These errors were made in the 2025 NZ ETS Regulatory Updates and affect the Climate Change (Stationary Energy and Industrial Processes) Regulations 2009.  

These values are relevant for 2026 emissions returns due in 2027. They don’t apply to 2025 emissions returns. That means 2025 emission returns (due at the end of April 2026) are unaffected. 

We intend to correct the values for natural gas field and geothermal steam DEFs outlined below via the annual regulatory updates, which would then apply retrospectively from 1 January 2026. We are also reviewing our processes to minimise the risk of future errors.  

Table 1: Proposed new field-based natural gas default emissions factors 

Natural gas field  Current value 
(tCO2e/TJ) 		 Proposed new value 
(tCO2e/TJ)
Kupe 55.46 53.46
McKee 54.45 54.41
Mangahewa 54.51 54.41
Maui 53.91 53.52

Table 2: Proposed new geothermal plant or process default emission factors 

Geothermal Plant or process Current value 
(tCO2e/t steam)		 Proposed new value 
(tCO2e/t steam)
Ohaaki 0.1490 0.0329
Te Mihi 0.0058 0.0044
Wairakei Station Site 0.0030 0.0022
Kawerau KA24  0.0190 0.0123
Ngāwhā I and II 0.0495 0.0185
Nga Awa Purua 0.0185 0.0085
Mokai I and II 0.0058 0.0041

We also intend to correct the national average DEF for natural gas. This is expected to be published in the regulations by the end of March. 

Table 3: Proposed new national average default emission factor for natural gas activities 

‍ Current value
(tCO2e/TJ)		 Proposed new value
(tCO2e/TJ)
EFavge – the national average emissions factor for natural gas  59.03 53.71

Please contact us through etsconsultations@mfe.govt.nz if you have any questions. 

Published submissions - 19 August 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.  

Decisions on Unit Settings  - 19 August 2025

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 - 19 August 2025

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. 

Published responses

View submitted responses where consent has been given to publish the response.

Closed 29 Jun 2025

Opened 28 May 2025

Contact

ETSconsultation@mfe.govt.nz

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)