The New Zealand Government is seeking feedback on the application of the international carry-over rules within the New Zealand Emissions Trading Scheme (ETS). These rules place a restriction on the number of certain types of units which can be carried over from the first Kyoto Protocol commitment period (CP1, 2008–2012) and be valid for use subsequently. This does not impact on NZUs.
International carry-over rules require units which are not carried over to be cancelled. We anticipate the carry-over of units will occur after the 31 May 2015 ETS surrender deadline. However 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 Government must decide to what extent, if any, New Zealand’s 2.5 per cent international carry-over entitlement for Certified Emissions Reductions (CERs) and Emission Reduction Units (ERUs) is extended to individual account holders.
Information received through this consultation process will allow the Government to better assess the potential impacts on account holders of the various options set out in the consultation document. We recommend that any NZEUR account holder with Kyoto units in their account read through the consultation document. The consultation will be open from Monday 4 March to 5 pm Friday 29 March.