Proposed changes to the NZ ETS

The MfE has released a consultation document titled "Proposed changes to NZ ETS and SGG levy regulations 2021".

It sets out a raft of potential adjustments to default emissions factors with the aim of giving effect to greenhouse warming potentials under the UN’s 5th Assessment Report (AR5). If taken up, these could affect ETS obligations for many sectors, from waste to synthetic gas users, to users of geothermal fluid and coal miners.  It also contains a number of other proposals which, if implemented, could have significant implications for business and for NZU holders generally.  In particular, price control settings and unit limits on auction volumes are tipped for an overhaul.  Read more in our newsletter.