Notice Type
Departmental
Notice Title

Ministerial Direction to the Registrar of the New Zealand Emissions Trading Register: Issuance of New Zealand Units into the Crown Holding Account in the New Zealand Emissions Trading Register

Having consulted the Minister of Finance and having had regard to all the relevant matters pursuant to section 68 of the Climate Change Response Act 2002, I direct the Registrar appointed in accordance with section 11 of the Climate Change Response Act 2002 to issue into the Crown holding account (NZ-1010) an additional 91.6 million New Zealand Units.

This direction does not affect any previous directions issued under section 68 of the Climate Change Response Act 2002.

In making the above direction to the Registrar I have consulted with the Minister of Finance and I have had regard to the following matters specified in section 68 of the Climate Change Response Act 2002:

Section 68(2)(b)(ii)

International climate change obligations

 

New Zealand has a Nationally Determined Contribution (NDC) target managed using an emissions budget across the period 2021-2030. Ensuring there are sufficient units available for entitlements, allocations, and auctioning supports the proper functioning of the New Zealand Emissions Trading Scheme (NZ ETS) and is consistent with our obligations under the Paris Agreement.

Section 68(2)(b)(iii)

The proper functioning of the emissions trading scheme

 

The proper functioning of the NZ ETS requires the issuance of sufficient NZUs to meet entitlements of post-1989 forestry participants; and any auctions of NZUs the Crown undertakes. Officials estimate that between now and the end of the 2023/24 financial year 31.201 million NZUs will be transferred to post-1989 forest land owners and Permanent Forest Sink Initiative participants; and 12.895 million NZUs will be transferred to industrial allocation recipients, 1.598 million NZUs for synthetic greenhouse gas removals and 4.051 million NZUs for participants engaged in certain removal activities. In addition, auctions will require 42.925 million NZUs to the end of the financial year 2023/2024.

Officials will monitor the balance of NZUs closely to ensure a further issuance of NZUs can occur to maintain the proper functioning of the NZ ETS.

Section 68(2)(b)(iv)

Any other matters that the Minister considers relevant

There are no other matters.