Participating in the New Zealand Emissions Trading Scheme (NZ ETS)

This section contains guidance for the different sectors who will be participating directly in the New Zealand Emissions Trading Scheme (NZ ETS).

For information about how the ETS will affect New Zealanders and advice on reducing your energy costs, please see What does the NZ ETS mean for me?

Ways of participating in the ETS

People and businesses can participate directly in the NZ ETS in three ways:

  • Some will have obligations to surrender New Zealand Units (NZUs) when they carry out certain activities. They are required to participate in the scheme. See About obligations for more information. Guidance on Surrendering units is also available.
  • Some may have opportunities to earn NZUs. They can choose to participate in the scheme.
  • Some will be allocated NZUs as compensation for increased costs under the scheme. They can participate in the scheme because, if they apply for and receive an allocation, they can trade their NZUs. See About allocations for more information.

It’s possible for one business to participate in all three ways – surrendering, earning, and receiving allocations of NZUs.

Sector roles and entry dates

The table below shows how different sectors participate in the ETS, and when they enter the scheme. Click on the links for specific information on how businesses in that sector participate in the ETS.

Sector Surrenders NZUs Earns NZUs Allocated NZUs Year of entry
Forestry √ √ √ 2008
Energy √     2010
Fishing     √ 2010
Industry √   √ 2010
Liquid fossil fuels √     2010
Synthetic gases √     2013
Waste √     2013

Last updated: 16 November 2012