Energy in the New Zealand Emissions Trading Scheme

Energy and climate change

New Zealand is in a unique situation because most of our electricity is generated from renewable sources, mainly from hydro power, making us well placed to move toward a low-emissions energy system.

However, reducing emissions from the energy sector remains a priority. Between 1990 and 2011, greenhouse gas emissions from electricity generation rose by approximately 49 per cent, and greenhouse gas emissions from energy use by manufacturing industries rose by approximately eight per cent.

How is energy affected by the ETS?

The stationary energy sector (coal, gas and geothermal energy) has obligations to report their activities and surrender New Zealand Units (NZUs) or equivalent overseas emission units under the New Zealand Emissions Trading Scheme (ETS). They do not receive an allocation of NZUs.

Obligations

Please see Energy’s obligations: Reporting emissions and surrendering NZUs for more information.

Allocations

The energy sector does not receive an allocation of NZUs because it is not trade exposed and is able to pass the costs of its ETS obligations on to its customers.

Last updated: 3 December 2012