Synthetic gases in the Emissions Trading Scheme

How are importers of synthetic gases affected by the ETS?

Importers of synthetic gases will have obligations to report their activities and surrender New Zealand Units (NZUs) under the Emissions Trading Scheme (ETS). They won’t receive an allocation of NZUs; however they may earn NZUs by exporting synthetic gases.

Like all New Zealanders, they’re likely to notice a small increase in energy 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

People who import synthetic greenhouse gases either in bulk or contained within products or appliances can start reporting their importing or exporting activities voluntarily from 1 January 2011. They will be required to report the amount of synthetic greenhouse gases they import from 1 January 2012.

Importers of synthetic gases will have obligations to surrender NZUs from 1 January 2013.

Allocations

Importers of synthetic gases won’t receive an allocation of NZUs because they’ll be able to pass the costs of their ETS obligations on to their customers.

Those who re-export synthetic greenhouse gases for destruction or contained in manufactured equipment are eligible to receive NZUs. This isn’t considered part of the ETS allocation process but is classed as a ‘removal activity’.

What synthetic gases are included in the ETS?

The ‘synthetic’ greenhouse gases included in the ETS are:

  • hydrofluorocarbons (HFCs)
  • perflourocarbons (PFCs), and
  • sulphur hexaflouride (SF6). 

Hydroflourocarbons are used in the refrigeration and air-conditioning, aerosol, fire protection and foam-blowing industries. Perfluorocarbons are used in refrigeration and air-conditioning. Sulphur hexafluoride is used in electrical switching equipment and in scientific applications.

Last updated: 19 August 2010