Auctioning of New Zealand Units (NZUs) is being introduced into the New Zealand Emissions Trading Scheme (NZ ETS) in 2021. This will align the supply of NZUs in the scheme with New Zealand’s emission reduction targets.
How the auctions will be run
Auctions will be run by the auction operator NZX. NZX has developed a managed auction service with the European Energy Exchange (EEX) to operate auctions on behalf of the Government.
Read the Guidelines for auction participants
Find out about the NZ ETS reforms that introduced auctioning
A confidential reserve price for auctions
The Government introduced a Bill to Parliament in February 2021 to enable a confidential reserve price for auctions. The Government intends to pass this Bill in time to enable a confidential reserve price to be set for the first auction on 17 March 2021.
The confidential reserve price has the purpose of preventing NZUs from being sold at auction at a price significantly below the secondary market price. If the auction clearing price is less than the confidential reserve price, the auction will not sell any NZUs. Unsold NZUs will be rolled forward to be sold at the next auction in the same calendar year.