Agriculture allocation:
NZUs for agriculture
About NZUs for agriculture
From 2015, when agriculture will face costs under the Emissions Trading Scheme (ETS), participants will be able to apply for an allocation of New Zealand Units (NZUs). The NZUs are intended as compensation for the increased costs the sector will face under the ETS.
Agriculture’s allocation will be uncapped – there is no set limit on the number of NZUs that may be allocated.
How much will participants get?
The allocation will be provided on an output intensity basis. This means that a participant’s allocation will vary with output.
The assistance level will be 90 per cent of the emissions baseline and will phase out at −1.3 per cent per annum from 2016. The baseline will be the industry average emissions per unit of output for a given year or years.
The baseline will be established by regulation and subject to a consultation process.
Last updated: 16 December 2011
