Our role in the NZ ETS

We want to make the New Zealand Emissions Trading Scheme (NZ ETS) as effective as possible to help Aotearoa transition to a low emissions economy. One way we aim to achieve this is by giving advice on NZ ETS unit limit and price control settings to the Government every year. 

Our role in the NZ ETS unit limit and price control settings 

The Minister for Climate Change is required to update unit limit and price control settings every year, to provide a five-year look ahead period.  This helps keep the NZ ETS aligned to emissions reduction targets and gives market participants information they need.

Acting as an independent advisor, we recommend NZ ETS unit limit and price control settings to the Government every year. This advice aims to support the effectiveness of the NZ ETS in helping Aotearoa New Zealand transition to a low emissions economy.

How you can be involved

If you would be interested in talking with us about the NZ ETS, please feel free to email us at hello@climatecommission.govt.nz. 

What happens once our advice is delivered  

We provide this advice to the Minister for Climate Change every year.

Each report is made public when it is tabled in Parliament by the Minister. At that point, we also publish on our website. You can find our previous advice here: Our advice on the NZ ETS

After we have delivered our advice, the Ministry for the Environment (MfE) – the lead policy agency for the NZ ETS – will run a formal consultation on the proposed settings. More information about the Ministry for the Environment's role in the NZ ETS is available on their website: New Zealand Emissions Trading Scheme | Ministry for the Environment

The Government will then decide on updates to the NZ ETS unit limit and price control settings. If the Government adopts limits and price control settings that differ from our recommendations, it must publicly explain why.