Technical Advisory Group Stationary Energy and Industrial Process Component of the New Zealand Emissions Trading Scheme

Purpose of this paper

This report is an interim progress report from the SEIP TAG to the government. The paper sets out:

  1. progress to date
  2. outstanding issues
  3. next steps.

Role of the SEIP TAG

The SEIP TAG was established to provide guidance and advice on technical design elements of the stationary energy and industrial process emissions components of the NZETS. The Terms of Reference of the TAG (see Annex II) do not extend to those design features that are specifically addressed as provisions in the draft legislation, for example, the definition of emission obligations, the base year for allocation, and the phase out of assistance. For this reason, participation in the TAG is in no way indicative of support by TAG members for the design features of the ETS as laid out in the Bill.

Parallel technical advisory groups have also been established to provide guidance and advice to the government on technical matters related to the liquid fuels sector and the agriculture sector

Membership

The SEIP TAG comprises 16 experts, including government officials (three) and industry experts (see Annex I membership list). The TAG is co chaired by Chris Baker (Saunders Unsworth) and Mark Storey (Emissions Trading Group)

Key Tasks

The Key tasks of the SEIP Tag have been identified as:

  1. To advise on options for providing assistance to industry. Specific issues related to this task are:
    1. Defining and evaluating different options for free allocation or other assistance;
    2. As part of the above, defining thresholds (size and scope) for assistance, rules for entry, trade exposure tests, recognition of early action etc;
    3. Defining activity data and emission factors to assess the basis for free allocation or other assistance.
  2. To advise on other technical design issues to be addressed by the TAG:
    1. Defining points of obligation and in particular advising on whether and how to administer opt ins/carve outs;
    2. Advising on specific issues about electricity – how to assess the impacts of emission prices on electricity prices, as an input to options for assistance.

 

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Last updated: 15 September 2008