Industry’s obligations: Reporting emissions and surrendering NZUs

Who is involved?

Producers of iron, steel, aluminium, clinker, burnt lime, glass and gold have obligations to report their emissions and surrender New Zealand Units (NZUs) under the Emissions Trading Scheme (ETS).

What industrial activities does the ETS cover?

The ETS covers the carbon dioxide emissions generated during the production of iron, steel, aluminium, clinker, burnt lime, glass and gold. It also covers perflourocarbons (PFCs) generated during the production of aluminium.

When will it happen?

Industrial sector businesses with obligations have been required to report their industrial process emissions from 1 January 2010. They are required to surrender NZUs for emissions that occur from 1 July 2010.

For 2010, they are only required to surrender NZUs for emissions occurring between 1 July and 31 December. From 2011 on, surrender obligations will apply to emissions for the full year. 

Participants will need to submit an emissions return for each calendar year by 31 March of the following calendar year. NZUs for that year must be surrendered by 31 May of the following year.

Transition period 1 July 2010 – 31 December 2012

During the transition period from 1 July 2010 to 31 December 2012 industry participants will only be required to surrender one NZU for every two tonnes of emissions, and can buy NZUs from the Government to meet their obligations at a fixed price of $25 per NZU if they wish.

After the transition period participants will be required to surrender one NZU for each tonne of emissions and the Government‘s fixed-price option will cease.

I’m a participant. What do I have to do?

Industrial process participants must record information about certain inputs or outputs associated with their activity based on methods in the Climate Change (Stationary Energy and Industrial Processes) Regulations (Emissions trading bulletin 13 provides an explanation of these regulations).

They will need this information to complete and file an annual emissions return.  The methods set out how an industrial participant must calculate their emissions in their annual return.

Last updated: 16 December 2011