NZ ETS unit settings and annual regulatory updates 2025

Closes 29 Jun 2025

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Penalties and infringements

The objectives of the proposal in this section are to fix minor drafting errors to ensure participants can be issued fees and fines.

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Update regulation cross-references to ensure participants can be issued fees and fines

The Climate Change Response (Infringement Offences) Regulations 2021 (the Infringement Regulations) came into force on 1 January 2022. They:

  • set out certain obligations in the NZ ETS and the synthetic greenhouse gas levy
  • clarify that not meeting these obligations is an infringement offence 
  • specify that an infringement may result in a fee or fine imposed by the court.

In January 2023, amendments to the CCRA that came into effect included changes to the forestry provisions in the CCRA. However, the Infringement Regulations were not amended to align with them.

The problem: Because the CCRA changes and the Infringement Regulations do not align, the EPA may not be able to issue infringement fees or seek a court-imposed fine for forestry participants who fail to comply with certain requirements under the CCRA.

Proposal: Correct the section reference errors in the Infringement Regulations to reflect the current version of the CCRA (table 6).

Regulation 9(1)(e) of the Infringement Regulations will be repealed, because an amendment to the CCRA made it redundant. Before that amendment, the emissions returns and notice requirements were separate. The CCRA now includes the emissions return formerly referenced in regulation 9(1)(e) with a notice requirement referenced in regulation 12(1)(c).

7 Climate Change Response (Emissions Trading Reform) Amendment Act 2020.

Table 6: Section reference errors in the Climate Change Response (Infringement Offences) Regulations 2021

Regulation Incorrect section reference Updated reference Change
reg 5(1) s 62(a) s 62(1)(a) Update the section reference.
reg 6(1) s 62(c) s 62(1)(c) Update the section reference.
reg 7(1) s 62(d) s 62(1)(d) Update the section reference.
reg 9(1)(c) s 189 s 183A Update the section reference.
reg 9(1)(d) s 191 s 186B Update the section reference.
reg 9(1)(e) s 193 s 187(4) Repeal reg 9(1)(e) because amendments to the CCRA made it redundant.
reg 12(1)(c) s 192(3) s 187(4) Update the section reference.
6. We propose to update cross-references in the Infringement Regulations. This would enable the EPA to issue infringement fees and seek fines for all participants who do not comply with their obligations. Do you agree with this proposal?
7. Please provide any other suggestions or feedback on the proposals related to penalties and infringements.