Industry in the Emissions Trading Scheme
Industrial processes and climate change
Industrial process emissions occur when materials are transformed from one substance to another in an industrial setting. Emissions are a result of the chemical reactions involved in these processes.
Emissions from New Zealand’s industrial processes sector represented six per cent of total greenhouse gas emissions in 2006. These emissions increased by 40.9 per cent from 1990 to 2007.
How is industry affected by the ETS?
Some industrial businesses have obligations to report their activities and surrender New Zealand Units (NZUs) under the New Zealand Emissions Trading Scheme (ETS).
Others receive allocations of NZUs to help offset increased costs under the scheme. There are some businesses that have an obligation to surrender NZUs and also receive an allocation.
Like all New Zealanders, those in the industrial sector are likely to experience a small increase in energy and fuel prices due to the ETS. For more information on these effects and how to reduce your energy costs, please see What does the ETS mean for me?
Obligations
Businesses that produce the following are required to report their emissions and surrender NZUs under the ETS:
- iron or steel
- aluminium
- clinker or burnt lime (resulting in calcination of limestone or calcium carbonates)
- glass (using soda ash)
- gold (if the CO2-equivalent emissions per annum exceed 5000 tonnes).
Please see Industry’s obligations: Reporting emissions and surrendering NZUs for more information.
Allocations
Emissions-intensive, trade-exposed businesses can receive allocations of NZUs.
Please see Industrial allocation: NZUs for industry for more information.
Last updated: 1 May 2013
