On Friday the Government proposed to ban industrial gas CERs for NZ ETS compliance.

- See "Consultation on Proposed Regulations Restricting the Use of HFC-23 and N2O CERs in the NZ ETS" here.  This follows the NZ ETS review panel's comments on industrial gas CERs in its recently released report.

The Government is consulting on 2 timing options, namely to ban industrial gas CERs that enter the NZEUR from 1 January 2012 (option 1) or 1 January 2013 (option 2) from use to meet NZ ETS surrender obligations.

Both timing options are earlier than the 1 May 2013 effective start date of the EU ETS ban on industrial gas CERs.  The ban would apply to industrial gas CERs that have already been purchased under existing forward contracts but that will not be delivered until after the regulations come into force.  However, the Government is also consulting on whether there should be an exemption for such forward contracts.  The ban would not apply to industrial gas CERs in the NZEUR at the time the regulations come into force.

The deadline for submissions is 5.00pm on Monday 31 October 2011.