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Draft LEG paper: NZ ETS unit settings and technical
regulatory updates 2024
Purpose
1. This briefing seeks
i
your feedback on the attached draft Cabinet paper Amendments to the New
Zealand Emissions Trading Scheme (NZ ETS) Regulations (Appendix one).
ii Your agreement to begin Ministerial consultation on the draft Cabinet paper on 3
September, subject to any feedback you may have.
Background
2. The Cabinet paper proposes that the Cabinet Legislation Committee authorises the
submission to the Executive Council of several amendment regulations. These are the:
i
Climate Change (Auctions, Limits, and Price Controls for Units) Amendment
Regulations 2024;
ii Climate Change (Liquid Fossil Fuels) Amendment Regulations 2024;
iii Climate Change (Other Removal Activities) Amendment Regulations 2024;
iv Climate Change (Stationary Energy and Industrial Processes) Amendment
Regulations 2024;
v Climate Change (Unique Emissions Factors) Amendment Regulations 2024;
vi Climate Change (Unit Register) Amendment Regulations 2024; and
vii Climate Change (Synthetic Greenhouse Gas Levies) Amendment Regulations 2024.
3. These amendment regulations encompass both the mandatory annual NZ ETS limits
and price control settings for units (unit settings), and the other technical regulatory
updates, including to the Synthetic Greenhouse Gas Levy.
4. Cabinet approved the issuing of drafting instructions for changes to unit settings and
technical regulations on 19 August 2024 [CAB-24-MIN-0083 and CAB-24-MIN-0084
refer]. Approval to draft delegated technical regulation items were also approved by you
[BRF-4916 and BRF-4978 refer].
Agency consultation
5. The attached draft Cabinet paper was circulated with agencies for feedback on 26
August. The agencies consulted included Ministry of Primary Industries, Ministry of
Transport, Ministry of Social Development, Ministry of Foreign Af airs and Trade, Ministry
of Business Innovation and Employment, Department of the Prime Minister and Cabinet,
Treasury, Environmental Protection Authority, New Zealand Transport Agency, Te Puni
Kōkiri, Te Arawhiti, and Customs New Zealand. Some minor comments by the
Environmental Protection Authority were received and integrated.
BRF-5183
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Recommendations
a.
Note that Cabinet approved updates to NZ ETS unit settings and some of the technical
regulations on 19 August 2024;
b.
Note that you were delegated authority and made decisions on the remainder of the
updates to technical regulations on 01 July 2024;
c.
Note that the attached draft Cabinet paper recommends Cabinet authorise submission of
amendment regulations to implement these updates;
d.
Note that we wil provide you with a draft report for your feedback on the reasons for
differences between the Climate Change Commission’s advice and the recommended
regulations in early October;
e.
Provide feedback on the attached Cabinet paper;
f.
Note another briefing wil be provided on 3 September with a revised version of the
Cabinet paper, if necessary, and the
Assessment of Accordance document and asking
you to consider if the legal tests are met
g.
Agree to commence Ministerial consultation on this Cabinet paper on 3 September.
Yes | No
Signatures
Mark Vink
General Manager - Markets
Climate Change Mitigation and
Resource Efficiency
29.08.2024
Hon Simon WATTS
Minister of Climate Change
Date
BRF-5183
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