Industry in the Emissions Trading Scheme

Important news

Applications for industrial allocation are now open for firms carrying out the following activities...
NEW ACTIVITIES ADDED 12 August 2010 – application deadline 12 November 2010.

Industrial allocation data collection: We are calling for data from businesses carrying out certain industrial activities that may be eligible for an allocation of NZUs.

New activities for industrial allocation: Think your activity might be 'emissions-intensive and trade-exposed'? Let us know.

How is industry affected by the ETS?

Some firms will have obligations to report their activities and surrender New Zealand Units (NZUs) under the Emissions Trading Scheme (ETS). Others will receive allocations of NZUs to help offset increased costs under the scheme.  There will be some firms that have both an obligation to surrender NZUs and will receive an allocation.

Like all New Zealanders, those in the industrial sector are likely to notice 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 who 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), and
  • gold (if the C02-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 firms can receive allocations of NZUs.

Please see Industrial allocation: NZUs for industry for more information.

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.

Last updated: 12 August 2010