About industry in the New Zealand Emissions Trading Scheme

This page explains how industry is affected by the New Zealand 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.

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..

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.

Obligations

Businesses that produce the following are required to report their emissions and surrender NZUs under the ETS:

  • Energy
  • Liquid Fossil Fuels
  • Industry
    • 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).
  • Synthetic Gases
  • Waste

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.

Reviewed:
08/04/16