27 March 2013

Tomorrow (Friday) is the deadline for submissions to the government on how international carry-over rules should apply to the New Zealand Emissions Trading Scheme (ETS).

These rules place a restriction on the number of some types of units that can be carried over from the first Kyoto Protocol commitment period (2008–2012), and also on those valid for surrender in the second Kyoto Protocol commitment period (2013–2020).

Under these rules, units that are not carried over must be cancelled after the ETS surrender deadline of 31 May 2015. AAUs can be carried over without limitation.

The government needs to decide to what extent, if any, New Zealand's 2.5 percent international carry-over entitlement – for Certified Emissions Reductions and Emission Reduction Units – is extended to individual account holders.

The government is consulting on this issue now to provide greater certainty to ETS participants, and to allow them to plan their compliance purchasing and surrendering appropriately. The consultation process will allow the Government to better assess the potential impacts of the various options set out in the consultation document.

Consultation opened on 4 March and closes 5 pm on Easter Friday, 29 March.

Source: MPI Sustainable Forestry Bulletin 42