NEW ZEALAND GAZETTE, No. 91

18 JULY 2013

Environment

Climate Change Response Act 2002

Ministerial Direction to the Registrar of the New Zealand Emission Unit Register: Issuance of New Zealand Units into the Crown Holding Account in the New Zealand Emissions Unit Register

Having consulted the Minister of Finance and having had regard to all the relevant matters, pursuant to section 68 of the Climate Change Response Act 2002, I direct the Registrar of the New Zealand Emission Unit Register to issue 30 million New Zealand Units (NZUs) into the Crown holding account in the New Zealand Emission Unit Registry by 1 July 2013.

I direct the Registrar to identify and “tag” the 30 million NZUs as suitable for conversion to Assigned Amount Units (AAUs) and exportable.

Dated at Wellington this 23rd day of June 2013.

HON TIM GROSER, Minister for Climate Change Issues.

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Ministerial Statement to Accompany the Direction to the Registrar of the New Zealand Emission Unit Register

In making the above direction to the Registrar, I have consulted with the Minister of Finance and I have had regard to the following matters specified in section 68 of the Climate Change Response Act 2002:

Section 68(2)(b)(i) The number of units that New Zealand has received, or that the Minister expects New Zealand to receive, under any international agreement

New Zealand has received 309,564,733 Assigned Amount Units (AAUs) under the Kyoto Protocol. New Zealand has elected to receive removal units for net increases in forest sinks (RMUs) at the end of commitment period one (CP1). It is estimated New Zealand will receive 72.2 million RMUs.

New Zealand decided not to take its commitment under the Second Commitment Period. Therefore, New Zealand will not have an assigned amount for commitment period 2 (CP2).

Section 68(2)(b)(ii) New Zealand’s international obligations, including any obligation to retire units equal to the number of tonnes of emissions that are emitted in New Zealand

Under the United Nations Framework Convention on Climate Change, New Zealand has a commitment to adopt policies and measures to mitigate climate change.

New Zealand also has obligations under the Convention’s Kyoto Protocol, whereby it must retire sufficient Kyoto units to cover its total emissions during CP1 or face non-compliance consequences. New Zealand has received 309,564,733 AAUs and expects to receive 77.2 million RMUs. The latest projection of New Zealand’s net position under the Kyoto Protocol is a surplus of 29 million units.

New Zealand decided not to take its commitment under the Second Commitment Period. Therefore, no international obligation to retire NZUs equal to the number of tonnes of emissions that are emitted in New Zealand exists at this stage.

Section 68(2)(b)(iii) The proper functioning of the greenhouse gas emissions trading scheme established under this Act

The proper functioning of the 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 over the next two financial years (2012/13, 2013/14), 23.1 exportable million NZUs will be transferred to post-1989 forest land owners.

Officials will monitor the balance of NZUs closely to ensure a further issuance, or cancellation of NZUs in 2014 can occur to maintain the proper functioning of the ETS.

Section 68(2)(b)(iv) Any other matters that the Minister considers relevant

There are no other matters.

Dated at Wellington this 23rd day of June 2013.

HON TIM GROSER, Minister for Climate Change Issues.

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Climate Change (Appointment of Person to Hold Certain New Zealand Units) Notice 2013

Pursuant to section 73 of the Climate Change Response Act 2002 (“the Act”), the Minister for Climate Change Issues gives the following notice.

Notice

1. Title—This notice may be cited as the Climate Change (Appointment of Person to Hold Certain New Zealand Units) Notice 2013.

2. Commencement—This notice takes effect from and including 5 July 2013.

3. Change to Composition—On 21 April 2011, I appointed the Forestry Emission Unit Trust (“the Trust”) under section 73(1) of the Act. The functions of the Trust are to apply for an allocation of New Zealand units in respect of land specified in section 72(2)(b)(i)(A) of the Act, to hold these units on trust for the future owners of the land.