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Industrial Allocation Guide to Data Collection

This document provides guidance to firms on completing several forms that have to completed in order for them to comply with the requirements of a number of Gazette Notices.

Introduction

The New Zealand Emissions Trading Scheme (NZ ETS) is a key part of the Government’s response to global climate change. Under the NZ ETS, some businesses will have a legal obligation to surrender ‘emission units’ to cover their direct greenhouse gas emissions or the emissions associated with their products. The consequent need to acquire these units will effectively put a price on emissions of these greenhouse gases.

Industrial allocation is focused on providing transitional assistance to the parts of the economy most heavily affected by the NZ ETS – the economic activities which are both emission intensive and trade exposed (EITE).1 The minimum threshold to qualify for industrial allocation is an emissions intensity of 800 tonnes of greenhouse gas emissions (in carbon dioxide equivalents) per $1 million of revenue from the activity.

To work out whether, and at what level of assistance, an activity qualifies for industrial allocation, the emissions intensity of the activity must be determined. For activities that are potentially eligible for industrial allocation, a Notice will be published in the New Zealand Gazette requiring all persons carrying out that activity to provide data on production, emissions and revenue. For the purposes of this guide, persons conducting the activity are referred to as firms.

Emissions and revenue data will be used to determine the emissions intensity of the activity, based on the weighted average of all firms conducting the activity. If the activity qualifies for industrial allocation, the data provided in response to the Gazette Notice will be used to determine how much will be allocated.

Data provided in response to a Gazette Notice must be submitted in accordance with the requirements of the Notice. These requirements include:

  • a definition of the activity, including its inputs and outputs, and an exhaustive list of the sources of emissions which are to be included or excluded from the activity
  • a definition of the products to be used as the basis of allocation
  • data collection rules which set out the methodologies for calculating revenue and emissions relating to the activity as defined. These are the same for all activities
  • a specified template for submitting data (the Data Form) with accompanying bases of preparation form (the Bases of Preparation) requiring explanations of any assumptions underpinning the data provided, and a signed declaration (the Declaration).

This guide is designed to help firms comply with the requirements of the Gazette Notice when completing the documents required by the Notice and applies to all activities. It does not take precedence over the Notice itself, or any other associated legislation.

Who is required to complete the Data Form

Any firm undertaking the activity described in the Notice on that date must complete and submit the Data Form, Bases of Preparation and Declaration.

If a firm fails to provide the data required under the Notice, that firm may not be eligible to be allocated New Zealand Units in respect of the activity, if that activity is ultimately eligible for allocation of units.

There are also offences under the Climate Change Response Act 2002 (the Act) where a person knowingly provides altered, false, incomplete or misleading information or, with the intent to deceive and for the purpose of obtaining a material benefit or avoiding a material detriment, fails to provide information or provides false, altered, incomplete or misleading information.

How to get forms and guides

You can view and download all forms and guides directly from the Ministry for the Environment’s (the Ministry) website by going to www.climatechange.govt.nz/industrialallocation. You can also obtain the forms and guides by calling 0800 CLIMATE.

How to get further information

It is anticipated that firms will have questions arising during the data collection process.

Assistance will be available from the Ministry for the Environment to assist firms during the data collection process. In addition, generic questions raised during the process will be noted and included in a regularly updated Frequently Asked Questions website page which can be found at www.climatechange.govt.nz/industrialallocation. To indicate an interest in this assistance, or for any other questions, please email datasupport@mfe.govt.nz.

Due date for submitting data

The Data Form, Bases of Preparation and signed Declaration must be submitted to the Ministry within the timeframe set out in the Gazette Notice relevant to the activity you are carrying out at the date of the relevant Gazette Notice. In most cases this will be within 30 working days from the date the notice is issued.

Please email your forms to industrialallocation@mfe.govt.nz. In addition, please send the signed Declaration and printed copies of the forms to:
2010 Industrial Allocation
Ministry for the Environment
PO Box 10362
Wellington 6143

If you are not able to send your forms electronically by email, please send a copy on CD to the Ministry at the address above. For any further questions on submitting your data, please email datasupport@mfe.govt.nz or call 0800 CLIMATE.


1. This guide focuses on the emissions-intensity tests. To qualify for industrial allocation, activities must also be trade exposed. Under section 161C of the Climate Change Response Act 2002, industrial activities are trade exposed unless, in the Minister’s opinion, there is no international trade of the output of the activity across oceans; or it is not economically viable to import or export the output of the activity.