In May this year it was announced that New Zealand would aim
for an emissions trading scheme (ETS) as a priced-based measure
to address climate change. The ETS for New Zealand will, over
time, apply to all sectors and all greenhouse gases.
Sectors covered under the scheme include forestry, liquid
fossil fuels, stationary energy, industrial processes,
agriculture and waste.
The ETS is a cap and trade scheme, with the overall cap for
the period 2008-2012 being the cap on New Zealand emissions
under the Kyoto Protocol. New Zealand emission units
(NZUs) are the primary domestic unit of trade
under the scheme, and are equal to one metric tonne of
CO2. Participants in the scheme will have an obligation to
hold NZUs to match the emissions levels for which they are
On 4 December 2007, the draft Bill relating to the ETS was
introduced in the House, accompanied by a change to the
Electricity Act 1992 which places a moratorium on new
fossil-fuelled electricity generation. The ETS appears
relatively unchanged from the main points outlined in the draft
documents released in September 2007. Over the coming
months the Bill will go through the select committee and public
The Bill has now had its first reading (12 December) and has
been referred to the Finance & Expenditure Select
Committee. A date for the submission period has yet to be
set but is expected to be mid March 2008.
Even though only 200 companies will be directly affected by
the ETS the indirect effects will be felt by everyone. All
businesses need to evaluate the effect of the scheme on their
operations, and make a decision whether to participate in the
select committee process.
Phillips Fox has changed its name to DLA Phillips Fox
because the firm entered into an exclusive alliance with DLA
Piper, one of the largest legal services organisations in the
world. We will retain our offices in every major commercial
centre in Australia and New Zealand, with no operational change
to your relationship with the firm. DLA Phillips Fox can now
take your business one step further − by connecting
you to a global network of legal experience, talent and
This publication is intended as a first point of
reference and should not be relied on as a substitute for
professional advice. Specialist legal advice should always be
sought in relation to any particular circumstances and no
liability will be accepted for any losses incurred by those
relying solely on this publication.
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An inevitable consequence of development and industrial progress is generation of waste. Therefore, efficient waste management is a matter of international concern.
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