This guide explains how the New Zealand Emissions Trading Scheme (NZ ETS) is designed and how it operates (a snapshot as at August 2018). It describes the core design features of the system, examines how and why the design features have evolved over time and explains how the NZ ETS works.
This document was produced by Motu Economic and Public Policy Research (with funding from both the New Zealand Government and the Korean Legislative Research Institute). The NZ ETS began operation in 2008 and continues to serve as a principal element of New Zealand’s policy response to climate change.
It does not address potential changes signalled following the change in government in October 2017.