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The New Zealand Emissions Trading Scheme

An emissions trading scheme introduces a price on greenhouse gases to provide an incentive for people to reduce emissions and enhance forest sinks. Emissions trading provides flexibility in how participants comply with their obligations, enabling a least-cost response. Changes to the scheme are being considered as part of the Select Committee Review and discussions with Australia on harmonisation with their similar Carbon Pollution Scheme.

Background to emissions trading

The Government is waiting on the report back from the Review Committee before committing to any decisions on the future of New Zealand's ETS. But the Government considers the environmental and economic consequences of climate change policy critical to New Zealand, so a careful and considered approach is required.

Making it happen

Emissions trading legislation

Most of the provisions of the Climate Change Response (Emissions Trading) Amendment Act 2008 came into force on 26 September 2008. The sections of the Act relating to GST come into force on 1 January 2009 and sections relating to offsetting of pre-1990 forest land may come into force at a later date.