Gazette.govt.nzHaving consulted the Minister of Finance and having had regard to all the relevant matters pursuant to section 68 of the Climate Change Response Act 2002, I direct the Registrar appointed in accordance with section 11 of the Climate Change Response Act 2002 to issue into the Crown holding account (NZ-1010) an additional 60.50 million New Zealand Units.
This direction does not affect any previous directions issued under section 68 of the Climate Change Response Act 2002.
Dated at Wellington this Monday the 7th day of December 2020.
Hon JAMES SHAW, Minister of Climate Change.
In making the above direction to the Registrar I have consulted with the Minister of Finance and I have had regard to the following matters specified in section 68 of the Climate Change Response Act 2002:
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Section 68(2)(b)(ii) |
International climate change obligations |
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New Zealand decided not to take its commitment under the Kyoto Protocol for the Second Commitment Period. Therefore, no international obligation to retire NZUs equal to the number of tonnes of emissions that are emitted in New Zealand exists at this stage. New Zealand has a Nationally Determined Contribution target managed using an emissions budget across the period 2021–2030, consistent with our obligations under the Paris Agreement. |
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Section 68(2)(b)(iii) |
The proper functioning of the emissions trading scheme |
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The proper functioning of the NZ ETS requires the issuance of sufficient NZUs to meet entitlements of post-1989 forestry participants; and any auctions of NZUs the Crown undertakes. Officials estimate that between now and the end of the 2021/22 financial year 23.09 million NZUs will be transferred to post-1989 forest land owners and Permanent Forest Sink Initiative participants; and 15.66 million NZUs will be transferred to industrial allocation recipients, 0.51 million NZUs for entities with a Negotiated Greenhouse Gas Agreement and 4.34 million NZUs for participants engaged in certain removal activities. In addition, auctions will begin in 2021, requiring 42.65 million NZUs to the end of the financial year 2021/2022. Officials will monitor the balance of NZUs closely to ensure a further issuance of NZUs can occur to maintain the proper functioning of the NZ ETS. |
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Section 68(2)(b)(iv) |
Any other matters that the Minister considers relevant There are no other matters. |