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
On 24 September, the Government introduced a bill to Parliament to revise the Emissions Trading Scheme to reduce the costs to households and the impact on jobs while ensuring New Zealand takes a responsible approach to the global problem of greenhouse gas pollution and climate change.
- Minister’s press release on introducing the amendment bill (Beehive website)
- Emissions trading scheme basics
- Emissions trading scheme diagram
- International examples of emissions trading
- Economic modelling of New Zealand climate change policy - Report to Ministry for the Environment
- Advice on a moderated NZ ETS (Ministry for the Environment website)
Making it happen
- Participating in the emissions trading scheme
- Input and engagement
- Emissions trading scheme reports
- Joint Implementation and the Clean Development Mechanism (Ministry for the Environment website)
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 came into force on 1 January 2009 and sections relating to offsetting of pre-1990 forest land may come into force at a later date.
- Pre-1990 Forest Land Allocation Plan (Consultation Draft)
- Climate Change Response (Moderated Emissions Trading) Amendment Bill (legislation website)
- Climate Change Response Act 2002
- Climate Change Response (Emissions Trading) Amendment Act (NZ Legislation website)
- Climate Change Response (Emissions Trading Forestry Sector) Amendment Act
- Climate change regulations
- Ministerial direction and Ministerial statement on issuing of New Zealand Units
- Questions and answers about emissions trading
- Emissions Trading Bulletin 11: Summary of the proposed changes to the NZ ETSÂ (Ministry for the Environment website)
