What does the ETS mean for me?

Most businesses and individuals will not be directly involved in the Emissions Trading Scheme (ETS).

Only a few businesses will have an obligation to surrender New Zealand Units (NZUs) to match their emissions. Likewise only some businesses will receive an allocation of NZUs to assist in the transition to paying a price for their carbon emissions.

To find out more, see About the ETS.

What can I do?

Find out how the ETS works and what you can do to reduce costs and emissions.

Reducing the cost

Others not directly involved will feel some of the effects of the scheme as the sectors that are involved pass their costs on to their customers. For example the price of electricity and fuel is likely to increase as the cost of carbon is passed through to customers. There will also be a range of secondary effects, such as increases in the price of some goods as a result of increased production costs or increased freight charges.

To reduce the effect of the ETS on the economy, the Government has introduced a transitional phase from 1 July 2010 to 31 December 2012. During the transitional phase the emissions obligation placed on liquid fuel, gas and electricity companies is halved (ie, they will only be required to surrender one emission unit for every two tonnes of emissions), and there will be a $25 fixed-price option for emission units.

Last updated: 16 December 2011