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Industrial Allocation
Issue 13, 30 June 2011

Welcome to this issue of our e-newsletter. The newsletter keeps you up to date on the process for allocating emissions units (NZUs) to businesses under the New Zealand Emissions Trading Scheme (NZ ETS).

In this issue:

1. Publishing industrial allocations
2. Audits
3. New activity – lactose and whey powder
4. Customer survey
5. Emissions Trading Scheme review
6. Environment Protection Authority (EPA)

1. Publishing industrial allocations

The Climate Change Response Act 2002 (Section 86b(6)(b)) requires the Ministry for the Environment’s Chief Executive (CE)) to publish the allocation of New Zealand Units received by individuals and businesses. When publishing the allocations the CE must consider whether publishing a final allocation of New Zealand Units (NZUs) would:

“....be likely to prejudice unreasonably the commercial position of the eligible person who received the allocation.”

While consulting with stakeholders, a number of issues have been identified concerning the sensitivity of commercial information that is not normally publically available. To ensure that the continued commercial activity of small family owned entities is protected, further analysis will be undertaken. At this time, no allocation information will be published until the issues are addressed.

When we are satisfied that all entities can be treated fairly and consistently, further information on the allocation of NZUs will be published in the New Zealand Gazette.

2. Audits

We are currently auditing a number of businesses which were selected from those that made their applications for an allocation of New Zealand Units (NZUs) prior to 30 April 2011 and have received their entitlement. We appreciate the cooperation we have received from those businesses.

Audits will continue to be carried out as part of the industrial allocation process, and are designed to be beneficial to you as well as us. They ensure the requirements in the Climate Change Response Act and regulations are being met. They will also help ensure you receive the full and correct number of units you are entitled to.

All businesses, that have received an allocation of NZUs, can expect to be audited at some time, so we suggest you maintain full records in relation to your applications.

3. New activity – lactose and whey powder

Businesses producing lactose and whey powder will be eligible to apply for units from 30 June. The application period closes on 30 September 2011. From next year applications for this activity will be in line with the standard application period of 1 January to 30 April.

If you are eligible, you can make a final application for the six months from 1 July to 31 December 2010, and a provisional application for the 2011 calendar year. Applications must be made through the Climate Change website. More information and links for applying can be found here.

For details on what other activities are eligible, check the Climate Change website here.

4. Customer survey

There are several teams involved with the NZ ETS across the Ministry for the Environment and the Ministry of Economic Development. We all aim to give you the best service possible. We would like your suggestions on how we can continue to improve the service we provide.

Therefore a customer survey will soon be sent to all those who received or surrendered units under the NZ ETS. This is your chance to provide feedback regarding the allocation and submission process, point out what works well and identify areas of improvement across all teams involved.

5. Emissions Trading Scheme review

In December 2010, an independent panel was established to review the NZ ETS. The final report from this review was sent to the Minister of Climate Change Issues on 30 June 2011. You can find more information about the review, including the terms of reference, at the Climate Change website here.

6. Environment Protection Authority (EPA)

From 1 July the new Environment Protection Authority (EPA) will be operational. The administrative functions of the NZ ETS will transfer to the EPA from the Ministry of Economic Development and the Ministry for the Environment from 1 January 2012. We will let you know what this will mean for you closer to when we move. Be assured the only change you are likely to see are contact detail changes for us.