Liquid fossil fuels in the Emissions Trading Scheme
How are liquid fossil fuel suppliers affected by the ETS?
Liquid fossil fuel suppliers have 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 Liquid fossil fuel suppliers’ obligations: Reporting emissions and surrendering NZUs for more information.
Allocations
Suppliers of liquid fossil fuels do not receive an allocation of NZUs because they are not trade exposed and are able to pass the costs of their ETS obligations on to their customers.
Liquid fossil fuels and climate change
Most forms of travel are fuelled by liquid fossil fuels, such as petrol and diesel, which result in emissions of greenhouse gases into the atmosphere.
New Zealanders travel frequently and have a high level of vehicle ownership. Our use of freight transport has increased as the economy has grown, and our geographical isolation makes us reliant on ships and planes to connect us and our products to the rest of the world.
Between 1990 and 2006, New Zealand’s total transport emissions increased by 5.6 million tonnes of carbon dioxide, or 64 per cent. If we do not make changes to the ways we travel and transport freight, or to the technology and fuels we use, transport energy use will grow further. Public transport, biofuels, electric vehicles, rail, cycling and walking, as well as improved vehicle efficiency can all help – as will the ETS.
Last updated: 20 December 2012
