Replenishing ETS units in the Crown account
This routine administrative process keeps the Emissions Trading Scheme operating effectively.
The Minister of Climate Change has directed the Environmental Protection Authority (EPA) to replenish the Crown account that holds New Zealand Units (NZUs) for the Emissions Trading Scheme (ETS).
This is a routine task carried out every few years to support the normal operation of the ETS.
NZUs are the tradable units used in the ETS. These can be sold at auction, assigned through industrial allocation, or issued for removing emissions through activities like forestry.
The Crown’s holding account in the ETS Register stores the government’s units in reserve until they are needed.
Every so often, the government needs to top up the NZUs in the Crown holding account so there are always enough units available. The number of units reflects decisions already made by the Government, for example on future ETS auction volumes.
Replenishing the Crown holding account doesn’t increase the number of NZUs in the current ETS market, or add ‘extra’ supply. Units only go into the market when they are needed, through the usual ETS processes of auctions, industrial allocation, and rewarding for removal activities.
This back-office update is separate to policy decisions, such as the annual ETS Settings and Regulations announced last week.
Read the Gazette notice on the issuance of NZUs into the Crown holding account(opens in new tab) [New Zealand Gazette website].