Emissions trading scheme reports

In this section you can access a number of documents, reports, cabinet papers and resources about the emissions trading scheme.

• The Finance and Expenditure Committee has now reported back to Parliament on the Climate Change (Emissions Trading and Renewable Preference) Bill.
• Emissions Trading Bulletin 5 explains the emissions trading part of the Bill as reported back to Parliament. Bulletin 6 explains the renewable preference part of the Bill. Bulletin 7 sets out the dates of commencement and relevant compliance periods for NZ ETS participants.
• Media release: Climate change legislation introduced [4 December 2007]
• Carbon Markets Workshop presentations - The Ministry for the Environment and the Emissions Trading Group hosted a Carbon Marketing Workshop on Friday 4th April at the Wellington Convention Centre.

Climate Change Leadership Forum papers

• Phase Out of Assistance: Briefing for the Climate Change Leadership Forum
  This paper was prepared by the Emissions Trading Group for the Climate Change Leadership Forum on 9 April 2008.  It briefly outlines some of the issues around phase out, describes an alternative option and assesses its pro's and con's.
• Alternative Proposal for Phase-out of Free Allocation
  This presentation was made to the Climate Change Leadership Forum by Jonathan Ling, Chief Executive of Fletcher Building, on 17 April 2008 and presents an alternative phase out option.
• Climate Change Leadership Forum papers. Prepared by the Emissions Trading Group, government departments and Forum participants.
• Emissions Trading Scheme Transport Fuels Technical Advisory Group Expert Advisory report [April 2008]
• Stationary Energy and Industrial Processes Technical Advisory Group meeting minutes and terms of reference
• Transport Fuels Technical Advisory Group meeting minutes and terms of reference
• Draft Liquid Fossil Fuels Regulations (PDF, 154 KB) and Forestry Sector Regulations (PDF, 120 KB) are now released for feedback. The draft regulations provide potential participants with more certainty about the nature of obligations under the emissions trading scheme. Bulletin no. 2 explains the regulations for the transport sector, and bulletin no. 3 explains the regulations for the forestry sector.

Reports

• Australian Carbon Pollution Reduction Scheme green paper – Proposed approach on allocation
  The Australian Federal Government has recently released a green paper on the design of its national emissions trading scheme – the Australian Carbon Pollution Reduction Scheme (CPRS). The paper identifies the key design decisions that are required, discusses alternative approaches, and in most instances indicates a preferred approach. Submissions on the green paper are due by 10 September 2008. The Australian Government then plans to issue a white paper outlining its final decisions on scheme design, and an exposure draft of the required legislation, by the end of 2008.
  This briefing note summarises the Australian government’s currently preferred design in relation to the free allocation of permits under the scheme.  It then contrasts that with the approach that has been taken in New Zealand.
• Tax rules for businesses dealing with emission units were introduced into Parliament on 2 July as part of the Taxation (International Taxation, Life Insurance and Remedial Matters) Bill. These rules supplement the forestry tax provisions which are contained in the Climate Change (Emissions Trading and Renewable Preference) Bill.  The Taxation Bill includes provisions which treat income and expenditure as arising on an accrual basis for non-forestry businesses, and zero-rate transactions in emissions units for GST purposes. For a technical explanation of the changes, see Tax treatment of emissions trading units.
• General Equilibrium Analysis of Options for Meeting New Zealand’s International Emissions Obligations
  This report draws together the results of general equilibrium modelling undertaken for the Emissions Trading Group since October 2007, previously described in a number of separate papers.
• Scoping Report for an Environmental Assessment of the New Zealand Emissions Trading Scheme and Closely Related Measures
  The Emissions Trading Group contracted a team of independent consultants, led by the Cawthron Institute, to scope an environmental assessment of the New Zealand Emissions Trading Scheme (NZ ETS).  At a high level, the Scoping Report identifies potential environmental effects of the NZ ETS and closely related measures, potential response measures, and terms of reference for further work. It helps to draw the linkages between the NZ ETS and New Zealand’s wider climate change and environmental policy initiatives, and identifies areas where it will be particularly important to ensure alignment. 
• The consultants held a technical workshop on 25 January 2008 to gather information for the Scoping Report. The workshop summary records input from participants, see Workshop Summary for a Scoping Report on Environmental Assessment of the NZ Emissions Trading Scheme.
• Summary of main tax changes in the Climate Change Response (Emissions Trading and Renewable Preference) Bill (PDF, 100 KB)
• Māori Impacts from the Emissions Trading Scheme: Detailed Analysis and Conclusions
  This report provides detailed analysis and conclusions on the potential economic impacts on Māori from the New Zealand Emissions Trading Scheme. It outlines economic opportunities and costs in absolute and relative terms.
• Emissions trading bulletin: Process for developing New Zealand Emissions Trading Scheme regulations (PDF, 80 KB)
  This bulletin outlines the process for developing NZ ETS regulations.
• Motu Report - Review of the New Zealand Emissions Trading Scheme
  The Emissions Trading Group commissioned internationally-recognised consultant Dr Suzi Kerr, from the Wellington-based Motu Economic and Public Policy Research consultancy, to review the Framework for a New Zealand Emissions Trading Scheme.
• The framework for a New Zealand Emissions Trading Scheme (PDF, 2.99 MB)
  Printed copies free from the Ministry for the Environment publications@mfe.govt.nz
  This framework document explains the design of the NZ ETS and the reasoning behind the government’s in-principle decisions. It sets out the rationale, implications and proposed form that emissions trading will take in New Zealand.
• The framework for a New Zealand Emissions Trading Scheme - Executive Summary (PDF, 1.54 MB)
  View the document as HTML
  Printed copies free from the Ministry for the Environment publications@mfe.govt.nz
• New Zealand emissions trading scheme: Questions and answers (PDF, 48 KB)
• See overseas examples of emission trading schemes for more information.
• Infometrics General Equilibrium Analysis of Options for Meeting New Zealand’s International Emissions Obligations report (PDF, 161 KB)
  The Emissions Trading Group commissioned Infometrics economist Adolf Stroombergen to analyse the impact of an Emissions Trading Scheme on emission levels, economic growth and other economic indicators. Infometrics’ report concludes that during the period between 2008 and 2012, the impact of New Zealand meeting its commitments under the Kyoto Protocol on a number of economic indicators is likely to be around 0.0 to 0.3 percent impact on GDP. In the longer term, the report says, introducing a price on carbon across all sectors of the economy through an Emissions Trading Scheme is clearly a lower cost option than making taxpayers responsible for meeting New Zealand’s likely climate change commitments.
• International Energy Agency comment on design of NZ ETS (PDF, 155 KB)
  The government invited the Paris-based International Energy Agency to review the ETS framework, following on from that organisation’s in-depth review of New Zealand’s energy policies last year.  The IEA monitors and advises on energy policy development among 26 OECD countries.

The following reports were prepared by Point Carbon, a world-leading provider of independent analysis on carbon markets based in Norway.

• 'Issues in the International Carbon Market 2008-2012 and Beyond' (PDF, 248 KB)
  This report examines prices in various carbon markets established under the Kyoto Protocol and the routes to markets available to companies with exposure to carbon price risk.
• 'Functionality in the International Carbon Reduction Project Market' (PDF, 94 KB)
  This report examines issues around Clean Development Mechanism Projects and the credits derived from Certified Emissions Reductions, including the emergence of voluntary offset markets.
• Point Carbon glossary of technical terms. (PDF, 152 KB)

Cabinet papers

The following Cabinet paper sets out the key features of the proposed New Zealand Emissions Trading Scheme:

• Cabinet Paper - A New Zealand Emissions Trading Scheme: Key Messages and Strategic Issues' and the Regulatory Impact Statement (PDF, 2.6 MB) [available on the Beehive website].

 

 View the emissions trading scheme diagram.