NZ ETS unit settings and annual regulatory updates 2026

Overview

The Government consulted on proposed updates to the New Zealand Emissions Trading Scheme (ETS) settings and regulations.

The ETS is the Government’s main policy tool for reducing emissions by influencing long-term investment by businesses and industries in low emissions technology.  This means ETS policy settings are key to a stable and predictable ETS, and settings updates help ensure alignment to our domestic emissions reduction targets.

Regulation proposals include changes to default emissions factors for natural gas activities, geothermal activities and liquid fossil fuels; and how landfill organisations report their emissions under the ETS.

The proposals aim to make rules more workable, improve emissions counting accuracy, ensure ETS costs are fair and truly reflect emissions and encourage remediation of contaminated land.

Read the annual updates to NZ ETS limits and price control settings for units 2026 consultation document (PDF, 1.1MB)

Read the technical annex (PDF, 732KB)

Read the proposed changes to NZ ETS regulations 2026 consultation document (PDF, 826KB)

Webinars

We are hosted three online webinars on the NZ ETS unit settings updates and proposed regulations for 2026.

What happens next

This consultation closed on 12 July 2026.

Once we have considered all 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 2026. They will come into force from 1 January 2027, unless otherwise specified.

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