This page has information on decisions to restrict the use of some types of Kyoto Protocol emission units within New Zealand’s Emissions Trading Scheme.
About the decisions
Former Acting Minister for Climate Change Issues Simon Bridges announced decisions to restrict the use of some types of Kyoto Protocol emission units within New Zealand’s Emissions Trading Scheme on 6 December 2013.
The Climate Change (Unit Register) Amendment Regulations 2014 [NZ Legislation website] implement this decision and prohibits the surrender of certain Kyoto Protocol first-commitment period (CP1) Units from 1 June 2015. These units are Certified Emissions Reduction Units (CERs), Emissions Reduction Units (ERUs) and Removal Units (RMUs).
This means participants may continue to use Kyoto Protocol first commitment period CERs, ERUs and RMUs to account for surrender obligations up until 31 May 2015, after which these units will no longer be eligible for surrender. From then they will need to surrender New Zealand Units (NZUs) to meet their obligations.
Participants holding New Zealand Assigned Amount Units (NZ AAUs) will be able to use them to account for surrender obligations and will automatically have them carried over for surrender beyond 31 May 2015.
The Government will actively monitor the impact of these decisions on the operation of the ETS, and will consider using measures such as auctioning New Zealand Units and/or reviewing the use of international units to ensure market liquidity should the need arise. New Zealand remains on track to meet its international climate change commitments, which are not affected by these decisions.
A Regulatory Impact Statement (RIS) was developed, which provides a high-level summary of the issues being addressed, the options and their associated costs and benefits, the consultation undertaken, and the proposed arrangements for implementation and review. The RIS is available for download on the right side of this page.