- Physical impacts and adaptation
- NZ greenhouse gas reports
- Doing our fair share
- Emissions trading
The New Zealand Emissions Trading Scheme (ETS) is the system in which New Zealand Units (NZUs) are traded. Under the ETS, certain sectors are required to acquire and surrender NZUs or other eligible emission units to account for their direct greenhouse gas emissions or the emissions associated with their products.
The purpose of the scheme is to help reduce New Zealand’s emissions to below business-as-usual levels and help New Zealand meet its international obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. This is achieved by establishing a price on emissions, which creates a financial incentive for emitters to reduce their emissions.
Most New Zealanders won’t participate directly in the scheme. They may notice a small increase in energy prices as organisations that emit gases pass on their increased costs.
People and organisations who do participate directly will do so in different ways:
These groups and others can then trade NZUs, as those with spare NZUs sell them to those who have to surrender NZUs.
Last updated: 19 November 2013