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Regulations covering the Liquid Fossil Fuels under the Emissions Trading Scheme (ETS) are now in place (Climate Change (Liquid Fossil Fuels) Regulations 2008). The significant fossil fuels used in New Zealand have been given a default emissions factor to use in the calculation of carbon dioxide equivalent emissions.

However, in the event that a fuel is imported or removed from the refinery where the listed emissions factor is not appropriate or the fuel is not named, it would fall into the category of ‘any other fuel that is directly combusted when used’. Participants have the choice of either using the default emissions factor (DEF) as set out in the Regulations or obtaining a unique emissions factor (UEF) specific to the new fuel.

At present the Regulations do not contain a mechanism to obtain unique emissions factors. This report outlines a process that could cover the development of a unique emissions factor and the issues that need to be covered by any legislation.

The stationary energy & industrial processes sector and the waste sector within the ETS also have the ability to use unique emissions factors and officials want to ensure that any mechanism is consistent (where possible) between the various sectors. Comment is made on the similarity of the processes required.

This report was presented to the Transport Fuels Technical Advisor Group (TF TAG) on 30 October 2008. Updates have been included in this report based on feedback from the presentation, questions circulated after the meeting and comments at a following TF TAG meeting on 5 December 2008.