Synthetic gases in the Emissions Trading Scheme

SGG Workshop – Auckland, 8 December 2011

Representatives from the Ministry for the Environment and the Environmental Protection Authority held a workshop in Auckland on 8 December 2011 to talk to SGG importers about registering. The workshop was designed to assist people to prepare for mandatory reporting obligations under the NZ ETS.  

The main messages of the workshop were:

  1. Register by 31 January 2012 or within 20 working days of becoming a participant i.e. importing SGGs over any prescribed threshold.
  2. Know what information is needed to be collected throughout 2012 so you can report emissions by 31 March 2013 (see the guide to synthetic greenhouse gas activities).
  3. Understand that even though the government’s response to the ETS review may lead to changes in 2012, you must comply with the legislation as it is currently written.

The presentation from the Workshop is available here (PDF, 1.32 MB).

How are importers of synthetic gases affected by the ETS?

Importers of SGGs 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 or destroying SGGs.

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

From 1 January 2012 people who import SGGs either in bulk or contained within products or appliances are required to collect data in order to report the amount of SGGs they had imported over the 2012 calendar year by 31 March 2013.

Importers of SGGs have obligations to surrender NZUs by 31 May 2014 that equal the amount of SGGs they imported over the 2013 calendar year, as reported by 31 March 2014.

Exporters of SGGs will be eligible to receive NZUs for their activities from 31 March 2013.

SGG regulations

Cabinet made policy decisions in September 2010 for the final set of NZ Emissions Trading Scheme synthetic greenhouse gas sector regulations.

The regulations can be found at the NZ Legislation website:

Cabinet’s decisions follow consultation that took place in June–August 2010.

Read the Cabinet decision:

Emissions Trading Scheme: Regulations for Synthetic Greenhouse Gases

Read the Regulatory Impact Statement (NZ Treasury website).

Key dates

  • are required to register by 31 January 2012 or within 20 working days of becoming a participant i.e. importing SGGs.
  • are required to collect data from January 2012 and calculate and report their emissions  by 31 March 2013, and
  • are required to collect data from January 2013 and calculate and report their emissions  by 31 March 2014 as well as surrender New Zealand Units (NZUs) for their emissions by 31 May 2014.

Allocations

Importers of SGGs 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 SGGs 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). 

Hydrofluorocarbons 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 gas insulated switch gear and circuit breaker equipment and in scientific applications.

Guidance

A guidance document for reporting synthetic greenhouse gas emissions and removals under the NZ ETS is available here.

Last updated: 14 December 2011