Table 2: NZ ETS sector entry dates Sector Voluntary reporting Mandatory reporting Full obligations – – 1 January 2008 – 1 January 2010 1 July 2010 – 1 January 2010 1 July 2010 – 1 January 2010 1 July 2010 1 January 2011 1 January 2012 1 January 2013 1 January 2011 1 January 2012 1 January 2013 1 January 2011 1 January 2012 Not yet decided As a result, the forestry sector has had the longest exposure to the NZ ETS and the largest economic impacts from emissions pricing. Policy changes since 2007 The initial framework of the NZ ETS was developed to allow for: flexibility for New Zealand firms to reduce or offset their emissions easy links into global emissions reduction efforts a price incentive for planting trees and carbon sequestration and a price disincentive for deforestation no inclusion of a fixed cap. sets out the objectives for the broadest CCRA amendments to date, and the resulting policy changes. Table 3: Summary of CCRA amendments in 2009 and 2012 Objectives Policy changes to the NZ ETS 2009 Made in the context of the global financial Key policy changes to the NZ ETS as a result of crisis: this included: reducing impacts on competitiveness and delayed entry of stationary energy and liquid producing greater certainty for economic fossil fuels to 1 July 2010 growth introduction of a transition phase from July providing a smoother transition for 2010 to December 2012 (one emission unit participants by protecting against price required to be surrendered per two tonnes of volatility in early years emissions (one-for-two), and an option to pay for emission permits at a fixed price of $25) ensuring affordability with existing fiscal constraints provision of free allocation on an intensity basis, with lower allocation eligibility maintaining flexibility to respond to possible thresholds to reduce trans-Tasman changes in the post-2012 international competitiveness risks; to be phased out at a framework rate of 1.3% per annum beginning 2013 maximising the degree of harmonisation with delayed entry of agriculture to the scheme to the proposed Australian Carbon Pollution 2015, and shifted to an intensity-based Reduction Scheme. allocation plan at 90% initially. 2012 These were introduced following the 2011 Key policy changes to the NZ ETS as a result of review and the public consultation process by this included: the Ministry for the Environment. The maintaining the $25 fixed price option after Government’s objectives for the 2012 CCRA 2012 amendments were to: maintaining the one-for-two surrender
Table 2: NZ ETS sector entry dates Sector Voluntary reporting Mandatory reporting Full obligations – – 1 January 2008 – 1 January 2010 1 July 2010 – 1 January 2010 1 July 2010 – 1 January 2010 1 July 2010 1 January 2011 1 January 2012 1 January 2013 1 January 2011 1 January 2012 1 January 2013 1 January 2011 1 January 2012 Not yet decided As a result, the forestry sector has had the longest exposure to the NZ ETS and the largest economic impacts from emissions pricing. Policy changes since 2007 The initial framework of the NZ ETS was developed to allow for: flexibility for New Zealand firms to reduce or offset their emissions easy links into global emissions reduction efforts a price incentive for planting trees and carbon sequestration and a price disincentive for deforestation no inclusion of a fixed cap. sets out the objectives for the broadest CCRA amendments to date, and the resulting policy changes. Table 3: Summary of CCRA amendments in 2009 and 2012 Objectives Policy changes to the NZ ETS 2009 Made in the context of the global financial crisis: reducing impacts on competitiveness and producing greater certainty for economic growth providing a smoother transition for participants by protecting against price volatility in early years ensuring affordability with existing fiscal constraints maintaining flexibility to respond to possible changes in the post-2012 international framework maximising the degree of harmonisation with the proposed Australian Carbon Pollution Reduction Scheme. Key policy changes to the NZ ETS as a result of this included: delayed entry of stationary energy and liquid fossil fuels to 1 July 2010 introduction of a transition phase from July 2010 to December 2012 (one emission unit required to be surrendered per two tonnes of emissions (one-for-two), and an option to pay for emission permits at a fixed price of $25) provision of free allocation on an intensity basis, with lower allocation eligibility thresholds to reduce trans-Tasman competitiveness risks; to be phased out at a rate of 1.3% per annum beginning 2013 delayed entry of agriculture to the scheme to 2015, and shifted to an intensity-based allocation plan at 90% initially. 2012 These were introduced following the 2011 review and the public consultation process by the Ministry for the Environment. The Government’s objectives for the 2012 CCRA amendments were to: Key policy changes to the NZ ETS as a result of this included: maintaining the $25 fixed price option after 2012 maintaining the one-for-two surrender
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