New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) The Minister must initiate a review of the operation and effectiveness of the emissions trading scheme established by this Act in each of the following periods:
(a) the first commitment period and each subsequent commitment period (if any); and
(b) if there is no subsequent commitment period,—
(i) the 5-year period commencing on 1 January 2013; and
(ii) each subsequent 5-year period after the period specified in subparagraph (i).
(2) Each review initiated under subsection (1) must be completed no later than 12 months before the end of the period in which the review is initiated.
(3) Despite anything in subsections (1) and (2),—
(a) the Minister must ensure that a review of the matters listed in subsection (5)(j) (an allocation review) is initiated and completed at least once in each of the following periods:
(i) the 5-year period commencing on 1 January 2011; and
(ii) each subsequent 5-year period after the period specified in subparagraph (i); and
(b) subsections (6) to (8) apply to each allocation review with all necessary modifications as if the allocation review were initiated under subsection (1); and
(c) the person conducting each allocation review may consider any other matter, including (but not limited to) the matters listed in subsection (5); and
(d) if the person conducting an allocation review considers the matters specified in subsection (5) in the relevant period, that consideration satisfies the obligation of the Minister under subsection (1).
(4) For the avoidance of doubt, if a review initiated under subsection (1) results in the matters listed in subsection (5)(j) being reviewed in a period listed in subsection (3)(a), then the Minister is not obliged under subsection (3) to ensure any further review of those matters is initiated in that period.
(5) Without limiting the scope of the review, a review under subsection (1) must consider—
(a) whether an amendment to this Act in relation to the emissions trading scheme is necessary or desirable; and
(b) whether New Zealand has undertaken, or is expected to undertake, any international obligations with respect to its emissions and removals that are different from or additional to any international obligations that New Zealand had undertaken when this section came into force, or since the last review under this section; and
(c) the stringency of any of the international obligations specified in paragraph (b); and
(d) the contribution of the emissions trading scheme established under this Act towards any targets that are in effect in accordance with section 224 or 225 at the time the review is initiated; and
(e) the types of Kyoto units and overseas units that may be surrendered for compliance with the emissions trading scheme established by this Act; and
(f) the operation of the commitment period reserve (if any); and
(g) the potential for linkage of the emissions trading scheme established under this Act to other greenhouse gas emissions trading schemes, including (but not limited to) Australia's carbon pollution reduction scheme; and
(h) the appropriateness of any methodologies that are prescribed for calculating emissions and removals; and
(i) whether it is necessary or desirable to—
(i) omit any of the activities from Schedule 3 or 4; and
(ii) add any additional removal activities to Part 2 of Schedule 4; and
(iii) amend the level of participant opt-in thresholds in Schedule 4; and
(j) whether changes to the provision of any allocation to industry or agriculture under subpart 2 are necessary or desirable, having regard to—
(i) whether New Zealand has undertaken, or is expected to undertake, any international obligations with respect to its emissions and removals that are different from, or additional to, any international obligations that New Zealand had undertaken when this section came into force, or since the last review under this section; and
(ii) the stringency of any of the international obligations specified in subparagraph (i); and
(iii) any change proposed to the activities listed in Schedule 3 or 4 following consideration of the matters specified in paragraph (i); and
(iv) the relative climate change obligations and emissions policies of New Zealand's trade competitors and trading partners; and
(v) any significant changes in emissions mitigation technology; and
(vi) the cost to the taxpayer and the economy of providing free allocation under subpart 2; and
(k) the appropriateness of the penalties in subpart 4 of this Part; and
(l) the implications (if any) of the following matters for the notification of intention under section 69:
(i) New Zealand's annual emissions for the 5 years before notification; and
(ii) the average price of units for the 2 years before notification; and
(m) the impacts of the forestry sector elements of the emissions trading scheme established under this Act on biodiversity within New Zealand; and
(n) the costs and benefits of establishing an independent or quasi-independent government body to carry out the allocation process, or any part of the allocation process, contained in subpart 2; and
(o) the social, economic, and environmental effects of the emissions trading scheme established by this Act (other than those considered under paragraphs (a) to (n)); and
(p) any other matter that the Minister considers relevant.
(6) The Minister must appoint a panel to conduct any review under subsection (1) and report in accordance with the terms of reference set by the Minister on the matters set out in this section.
(7) Following the completion of each review under subsection (1), the Minister must—
(a) publish the report of the panel on the review; and
(b) present a copy of the report to the House of Representatives.
(8) If the panel recommends any change in relation to allocation to industry or agriculture that involves amending any Act or making or amending regulations under this Act, the Minister must—
(a) prepare a report that contains a response to the panel's recommendations for legislative change; and
(b) present a copy of his or her report to the House of Representatives.
(9) To avoid doubt, this section does not limit the ability of the Minister to initiate reviews of the operation and effectiveness of the emissions trading scheme established by this Act at any time and may use any method of review (including, but not limited to, the method specified in this section).
Section 160: substituted, on 8 December 2009, by section 56 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).
Section 160(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(3)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(3)(d): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(5)(p): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(6): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(7): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(8): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
Section 160(9): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).
