Updating the new zealand emissions trading scheme

The NZ ETS covers forestry (a net sink), energy (42% of total 2012 emissions), industry (7% of total 2012 emissions) and waste (5% of total 2012 emissions) but not pastoral agriculture (46% of 2012 total emissions). It also creates a specific domestic unit; the 'New Zealand Unit' (NZU), which will be issued by free allocation to emitters, with no auctions intended in the short term.

Forest land is classified differently depending on when it was first established – pre-1990 and post-1989 forest land.In this case, GHG emissions can "leak" (carbon leakage) to another region or sector with less regulation (p. Leakages may be positive, where they reduce the effectiveness of domestic emission abatement efforts.Leakages may also be negative, and increase the effectiveness of domestic abatement efforts (negative leakages are sometimes called spillover) (IPCC, 2007).Forestry is important in helping New Zealand meet its international climate change obligations.By putting a price on greenhouse gases, the Emissions Trading Scheme (ETS) encourages landowners to establish and manage forests in a way that increases carbon storage.

Updating the new zealand emissions trading scheme