Data collection to inform whether to review industrial allocation policy

The Minister for Climate Change has issued four Gazette notices calling for data from anyone undertaking the following emission-intensive, trade-exposed (EITE) activities.

Gazette notices calling for data on emission-intensive, trade-exposed activities

For each EITE activity listed above the Minister is calling for data on:

  • greenhouse gas emissions
  • revenue
  • production statistics. 

The data will be collected from the three financial years between 1 July 2016 and 1 June 2019.

Section 161D(3)(d) of the Climate Change Response Act 2002 (the Act) enables the Minister to collect EITE activity data to determine “whether any matter should be considered by a review under section 160”.

Why EITE data is being called for

The quantity of industrial allocation given to EITE industry is based on data from 2006-2009. Over the last decade there have been changes to industry composition, fuels used and efficiency improvements to methods of production. This means that current allocation settings may not be representative of an activity’s national average emissions intensity.

The data collected will be used to calculate current emissions intensities and allocative baselines for each of the four activities. This information will then be used in the decision-making process as to whether a review of industrial allocation policy is required. 

This data collection exercise will not change existing decisions on eligibility, or the prescribed allocative baselines that determine how much allocation a firm receives. 

Actions for firms undertaking the specified activities

To fulfil the obligations of the Gazette notice, firms undertaking any of the activities above need to submit three forms. 

  • Data forms – activity specific spreadsheet to record emissions, production, and revenue data. 
  • Basis of preparation – supplementary information to support the data forms, such as uncertainties in emissions data.
  • Declaration – confirmation that the enclosed data is true and correct. 

Submitted data will be treated in confidence subject to the Official Information Act 1982.

Submission of these documents needs to be within 50 working days of publication of the Gazette notice. 

Only firms performing the activities in the listed Gazette notices above are subject to this data collection exercise. Firms should check they meet:

  • the activity definitions, including the activity outputs
  • the products used as the basis for allocation. 

Activity definitions can be found in the Climate Change (Eligible Industrial Activities) Regulations 2010 or in the relevant Gazette notice. 

Firms are advised to use the comprehensive guide on how to correctly calculate emissions, revenue, and production data for this data collection exercise. It is important that firms follow the guide throughout the process. The guidance explains the data collection rules that are outlined in the Gazette notice, and how to fill out the data forms. 

Guide to data collection and data forms

Guide to data collection

Industrial Allocation Guide to Data Collection. 

Data forms

Additional forms

Where to send your forms

Please email your completed forms to industrialallocation@mfe.govt.nz in the same file format in which they were provided. Ensure the subject line of your email submission includes your activity and the name of your firm.

If you cannot email the forms, please contact the Ministry to arrange another method. 

Legal requirement to comply with Gazette notice

Firms who undertake the four specified activities need to submit their forms within 50 working days of publication of the Gazette Notice. 

If a firm fails to provide the data required under the Notice, the Minister for Climate Change may give further notice to provide information within 10 working days. Failure to comply may render that firm ineligible for an allocation, in accordance with section 161D(6) of the Act. 

There are also offences under 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. 

What will happen next

At the end of the data collection period, the Ministry will analyse the data and report back to the Minister for Climate Change on decisions regarding a review of industrial allocation policy.

Contact us

If you have any general or technical questions relating to this data collection, please email industrialallocation@mfe.govt.nz

Glossary for EITE data collection terms

Activity output: the output(s) of a defined activity which is used to calculate revenue.

Allocative baseline: an emissions factor that represents the amount of emissions attributed to the manufacture of a unit of product.

Carbon dioxide equivalent: a metric used to compare the emissions from different greenhouse gases based on their global warming potential. For this data collection the unit is defined as [CO2-e].

Co-generation: the combustion of fuels to generate both heat and electricity.

Direct fuel use: fuel that is used on site where the activity is undertaken.

Electricity allocation factor: an emissions factor that estimates the cost impact of an emissions price on the price of electricity.

Eligibility: in the context of industrial allocation, eligibility means meeting the requirements in the Climate Change Response Act 2002 to receive an allocation of units.

Emissions factor: a factor that converts some input quantity (such tonnes of fuel) into an equivalent amount of emissions (either from direct use or other processes) released during a chemical/physical/biological transformation of the input.

Emissions intensity: an amount of emissions per unit of some parameter. In the context of industrial allocation it generally means the amount of emissions released from a particular activity per one million dollars of revenue.

Emissions-intensive: activities that reach a certain emissions intensity threshold.

Fugitive coal seam gas emissions: methane gas trapped between coal seams that is released in the mining process.

Gazette notice: a legal notice that is published in the New Zealand Gazette – the official newspaper of the New Zealand Government.

Greenhouse gases: gases in the Earth’s atmosphere that absorb and emit radiation at similar wavelengths to those emitted by the Earth’s surface and consequently cause the greenhouse effect. In the context of this data collection greenhouse gases are often referred to as emissions.

Industrial allocation: a policy which offsets a portion of emissions costs placed on emissions-intensive and trade-exposed firms by the New Zealand Emissions Trading Scheme through a free allocation of New Zealand Units.

New Zealand Emissions Trading Scheme: an emissions market that produces a price signal to encourage emissions reductions. It is the government’s primary tool to reduce emissions.

Product (basis of allocation): an output of a defined activity that is used as the basis to determine the total emissions from that output.

Revenue: in the context of this data collection, revenue is defined as an appropriate market price of the activity output multiplied by the total amount of saleable output.

Trade-exposed: the activity output is exposed to international trade.

Reviewed:
13/08/20