In a consultation paper published by the Ministry for the Environment, the government is proposing options relating to the domestic carry-over of Kyoto units Certified Emissions Reductions (CERs) and Emission Reduction Units (ERUs) in light of the international carry-over rules applying to the government under the Kyoto Protocol. Such carry-over rules would likely come into effect after 31 May 2015, but early consultation and regulation is proposed to provide ETS participants with certainty as to the rules that will be applied and to allow them to plan their compliance purchasing and surrendering appropriately.
The government's preferred option, as set out in the consultation paper, is to not extend the international carry-over provisions to individual account holders in the NZ Emission Unit Register, as the potential costs to the taxpayer would outweigh the limited benefits to account holders. This would mean that any CERs and ERUs from the first commitment period would be automatically cancelled and would be unable to be used beyond 31 May 2015. However, the government is consulting to ascertain whether this is also the preferred option of individual account holders and/or which options they prefer.
Submissions close on 29 March 2013.