31 Mar 2009
Nick Smith, the Minister for Climate Change Issues has directed the Registrar of the New Zealand Emissions Unit Registry to issue 8 million New Zealand Units into the Crown holding account. The ministerial direction and the ministerial statement were tabled in the House on 25 March 2009.It is understood the allocation is to meet emissions returns processed by MAF in March 2009.
According to the climate change website, the proper functioning of the NZ ETS requires the issuance of sufficient NZUs to meet entitlements of post-1989 forestry participants; any entitlements under an allocation plan; and any auctions of NZUs the Crown undertakes.
Officials estimate that in 2008 post-1989 forests may store around 16Mt of carbon and that up to 8m NZUs may be claimed by post-1989 forestry participants by 31 March 2009.
The Ministry of Agriculture and Forestry (MAF) has an obligation to process emissions returns within 20 working days (as it receives them) and to notify the Minister of Finance about how many NZUs the participant is entitled to.
The Act requires the Minister of Finance, as soon as practicable after receiving notifications from MAF (in relation to post-1989 forest land), to direct the New Zealand Emission Unit Registrar to transfer NZUs to participants. Functionality will be available in the existing Kyoto Registry to facilitate the transfer of NZUs to participants from 1 April 2009.
