Hon Dr Nick Smith
Minister for Climate Change Issues
11 December 2009
Media Statement
Govt to consult with industry on ETS allocations
The Government today released a consultation document as a first step in the process of allocating emission units to
industry under the Emissions Trading Scheme (ETS), Minister for Climate Change Issues Nick Smith says.
“The most complex aspect of the ETS is allocations for trade-exposed industries that are emissions intensive. These are
necessary to avoid the problem of exporting these industries and their emissions and jobs offshore.
“The law provides for allocations to industries at 60% for those on 800 tonnes per $1 million revenue and 90% for those
on 1600 tonnes per $1 million revenue. This process is about identifying those firms and putting the systems in place to
provide their allocation.
“The consultation document lists industrial activities that might be eligible for an allocation. The Government wants
firms that conduct these activities to identify themselves. It also wants firms that perform other activities that may
also be eligible to receive an allocation to come forward.
“New Zealand has aligned its approach to industry allocations closely with that which was proposed under the Australian
Carbon Pollution Reduction Scheme. Delays with this scheme mean New Zealand is going to need to advance work on
allocations ahead of Australia.
“The Government, through the Ministry for the Environment, will make its best endeavours to give certainty to eligible
companies before July about how many emission units they’ll receive. Manufacturers and industrial companies should be
thinking as soon as possible about compiling data that will be needed for eligibility decisions.
“Getting on with this work is important to ensuring a smooth introduction of New Zealand’s ETS in the energy and
industrial sectors on 1 July 2010.”
Note to media: The consultation document can be downloaded from www.mfe.govt.nz/publications/climate/development-industrial-allocation-regulation-ets/index.html.
Submissions close on 12 February 2010.
ENDS