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

Background

The Government has decided in principle that stationary energy and industrial process emissions will be brought into the New Zealand Emissions Trading Scheme (NZETS) on 1 January 2010. 

Including stationary energy and industrial processes in the NZETS presents a number of challenges which need to be worked through.  Many of these challenges are highly technical in nature, and are attributable to issues such as the complex and specialised nature of industrial processes, complexities in markets and distribution networks for electricity and gas, and associated issues of measurement and verification.  MED is therefore seeking a high degree of technical and specialist input from the relevant sectors in developing the policy to implement the stationary energy and industrial process components of the NZETS.

The Chief Executive of the Ministry of Economic Development is establishing a Technical Advisory Group (TAG) to act as the principal tool for engaging the energy and industrial sectors on the technical design elements of this component of the NZETS.  The TAG will comprise technical and policy specialists from the industry and energy sectors, science/technical community and government.  The goal is to ensure that the NZETS functions in a sensible and practical manner for the stationary energy and industrial process sectors.

The TAG will contribute to the development of the NZ ETS and via this to outcomes under the New Zealand Energy Strategy.  A copy of the Government documents The Framework for a New Zealand Emissions Trading Scheme and The New Zealand Energy Strategy are attached for reference.

Membership

The TAG will comprise [twelve] or fewer technical and policy experts from within industry, government, and the scientific/technical community, with a Chair appointed by the Chief Executive of MED.  Membership shall include:

  • One member from the Emissions Trading Group or from broader NZETS policy development;
  • One member from the Ministry of Economic Development;
  • One member from the Ministry for the Environment;
  • Two or more members with expertise/knowledge in electricity generation or the electricity sector more generally;
  • Two or more members with expertise/knowledge of issues relevant to major energy users;
  • Two members with expertise/knowledge of issues relevant to industrial process emitters;
  • One member with expertise/knowledge of issues relevant to Small and Medium Enterprises;
  • Other members as deemed appropriate by the Chief Executive of MED.

All non-government members of the TAG, will be appointed by the Chief Executive of MED based on recommendations from the [energy and environment/electricity] group.  These members will be selected to provide specific technical and/or policy expertise rather than to represent particular interests or interest groups.

The TAG may invite others with relevant expertise to attend meetings from time to time.

Role

The primary role of the TAG will be to:

  1. Provide guidance and advice on technical design elements of the Stationary Energy and Industrial process emissions components of the NZETS;
  2. Peer review the findings of technical/policy reports and perform a general quality assurance role;
  3. Participate in a series of wider stakeholder seminars/workshops;
  4. Facilitate the delivery of a report to MED outlining key technical considerations and recommendations for areas relevant to the stationary and industrial process sectors, including:
  • Methodologies and processes for monitoring, reporting and verification of emissions;
  • Accounting for mitigation behaviour on site; and
  • Work required for implementation.

In fulfilling its role, the TAG will uphold the broad NZETS core design/objectives and allocation principles.

Secretariat

The TAG will be serviced by a special secretariat that will perform both an administrative role and an analytical role.  Administrative functions include:

  1. Coordinating TAG meetings and recording minutes;
  2. Compiling and distributing meeting papers;
  3. Coordinating and managing a series of wider stakeholder workshops on the agriculture component of the NZETS; and
  4. A general facilitation role and other roles as per its contractual arrangements with MED.

Analytical functions of the secretariat will include but are not limited to:

  1. Composing the final report to MAF as per (4) in the previous section.

The analytical work for tasks under (3) in the previous section will be performed largely by MED with guidance from the TAG.

Deliverables

The TAG does not have any specific deliverables, although it will play a critical quality assurance role in the development of a substantive report to MED on the stationary energy and industrial energy component of the NZETS.  Its primary role is in the provision of advice to MED and the TAG Secretariat.

Information made available to the TAG or produced by TAG members will be made publicly available.

MED retains full privilege to accept or reject the recommendations of the TAG.

Meeting process

The TAG will meet on a monthly basis or more or less frequently as determined by the Chair.

A quorum will be half plus one member.

Substitution of membership is allowable with the prior permission of the Chair.

In the absence of the Chair of the TAG, the Chair will appoint an acting Chairperson who will be a member of the TAG.

Members will notify the secretariat within a reasonable time frame if they are unable to attend a meeting.

If a member is absent for more than three meetings without approval of the Chair, their position may be considered vacant.

Minutes of the meeting will be recorded and circulated to members within ten working days of the meeting.

Once endorsed by the TAG, minutes of meetings will be publicly available.

Reporting

The Chair of TAG will be invited to report to the Peak Group from time to time.

Duration

MED will contract for the final report on the stationary energy and industrial process emission component of the NZETS to be delivered by [mid 2008?].

The TAG will be deemed to have fulfilled its role upon the delivery of this report, or on the decision of the Chief Executive of MED and will disband at that point.

Participation in good faith

The primary role of the TAG, is the provision of independent technical and policy advice.  Members are therefore expected to participate without prejudice to the policy outcome.  Members of the TAG are required to act in good faith and on a ‘no surprises’ basis.

Information prepared for the TAG or by the TAG will be of interest to member organisations and wider stakeholders.  Where information has been made available to members, they may only circulate it where prior approval has been obtained from the Chair.

Review/assessment of performance

The Chair of the TAG in consultation with other members of the group, will conduct a self assessment of performance after four meetings.

The results of the assessment will be forwarded to the Chief Executive of MED along with any recommendations for revising the terms of reference for the group.

Last updated: 15 September 2008