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Industrial Allocation
Issue 3, 7 April 2010

Welcome to the third issue of our e-newsletter to keep you up-to-date with the regulations-making process for allocating emissions unit credits to businesses under the Emissions Trading Scheme (NZ ETS).

In this issue:

Calls for the provision of data

The Minister for Climate Change Issues has issued calls for data for a number of activities that are potentially eligible for industrial allocation.

In the supplement to the New Zealand Gazette, No. 34, page 953, 26 March 2010, the activities are:

  • aluminium smelting
  • production of carbamide (urea)
  • production of chlorine gas and sodium hydroxide (caustic soda) solution
  • production of glass containers
  • production of high purity ethanol
  • production of hydrogen peroxide
  • production of burnt lime
  • production of methanol.

In the supplement to the New Zealand Gazette, No. 38, page 1025, 31 March 2010, the activities are:

  • manufacturing of carbon steel from cold ferrous feed
  • production of cartonboard
  • production of market pulp
  • production of newsprint
  • production of packaging and industrial paper
  • production of tissue paper.

Electronic copies of the Gazette Notices are available at www.gazette.govt.nz, while printed copies can be purchased from the New Zealand Gazette Office or Bennetts Government Bookshop, Wellington.

Any firm carrying out the activity defined in a Gazette Notice is required to provide financial, production and emissions data to the Minister. This data is necessary to determine whether these activities will qualify for the allocation of emission units. Firms who do not supply data may not be able to receive units. 

Data collection rules

The data provided in response to the Gazette Notices must be submitted in accordance with the data collection rules stated in these notices. The data collection rules set out the methodologies to be used for calculating production, emissions and revenue relating to the activity. There are five revenue rules, 13 emissions rules and two data preparation rules. The rules are consistent for all activities.

Data must be collated and submitted in a specified template (the Data Form) for the activity, along with a Bases of Preparation and signed Declaration, within the deadline specified in the Gazette Notice. These documents are available at www.climatechange.govt.nz/industrialallocation. Further information on the data is also available on this website.

Draft activity definitions for new activities: update

Consultations have now closed on the draft definitions for the following activities.

  • iron and steel manufacturing from iron sand
  • production of clay bricks
  • production of cucumbers
  • production of gelatine
  • production of fresh tomatoes
  • production of fresh capsicums
  • production of lactalbumin powder
  • production of lactose
  • production of milk minerals
  • production of protein meal
  • production of raw reconstituted wood panels
  • production of whey cheese product
  • production of whey powder
  • production of whey protein concentrate
  • production of whey protein isolate.

These activity definitions are expected to be finalised in the next few weeks, and calls for data for these activities issued in early May.

Consultation on the draft definitions for production of roses and production of laminated panels is currently underway.

Publication of submissions

A detailed summary of submissions on the December industrial allocation regulations consultation document will be published at www.climatechange.govt.nz shortly. The summary of submissions summarises the key issues raised by submitters, such as their comments on the electricity allocation factor, revenue rules and emission rules. It also sets out the Government’s response to these comments.

The Government will also make copies of the submissions available at www.climatechange.govt.nz, with commercially sensitive information withheld from publication.

Freephone: 0800 CLIMATE (0800) 254 628
Email: etsallocations@mfe.govt.nz