NZ ETS Tranche two: Enabling future price controls

Date: May 2019

This Cabinet paper forms part of the second tranche of improvements to the NZ ETS. It proposes to transition from the cost containment reserve to the fixed price option price ceiling when auctioning begins of New Zealand Units. It also proposes to enable a price floor to be added to the NZ ETS, if required in the future, by setting an auction reserve price.