New Zealand Legislation: Bills

17 New sections 18CA and 18CB inserted

• The following sections are inserted after section 18C:

  “18CA Effect of surrender, retirement, and cancellation, and conversion

  • “(1) A unit that is transferred to a cancellation account may not be further transferred, retired, surrendered, carried over, or cancelled.

    “(2) A Kyoto unit that is transferred to—

    • “(a) a retirement account may not be further transferred, retired, surrendered, carried over, or cancelled; and

    • “(b) a surrender account may be further transferred only in accordance with subsection (3).

    “(2) A Kyoto unit that is transferred to a retirement account may not be further transferred, retired, surrendered, carried over, or cancelled.

    “(3) A Kyoto unit that is transferred to a surrender account may, in accordance with a direction from the Minister of Finance, be transferred to—

    • “(a) a retirement account or a cancellation account; or

    • “(b) a participant’s holding account, if the direction was given on receipt of a notice from the chief executive under section 112 (which relates to reimbursement of New Zealand units or approved overseas units).

    “(3) A Kyoto unit that is transferred to a surrender account may only be further transferred, in accordance with a direction from the Minister of Finance, to—

    • “(a) a retirement account or a cancellation account; or

    • “(b) a participant’s holding account, if the direction was given on receipt of a notice from the chief executive under section 112 (which relates to reimbursement of Kyoto units).

    “(4) A New Zealand unit or an approved overseas unit that is transferred to a surrender account may be further transferred only in accordance with a direction from the Minister of Finance given on receipt of a notice from the chief executive under section 112 (which relates to reimbursement of New Zealand units or approved overseas units).

    “(5) A New Zealand unit that is transferred to a conversion account may not be surrendered, cancelled, or otherwise further transferred except as required by section 30E(4)(c).

  “18CB Certain Kyoto units may not be surrendered

  • Despite anything in section 18C, the Registrar, with respect to any application to transfer Kyoto units issued in a relevant commitment period,—

    • “(a) may not, if the application is received in a subsequent commitment period, transfer those Kyoto units to a surrender account unless those Kyoto units have been carried over to the subsequent commitment period in accordance with this Act and any regulations made under this Act; and

    • “(b) must notify the applicant that the transfer may not proceed.

  “18CB Restriction on the surrender of assigned amount units

  • “(1) No participant may surrender, or permit to be surrendered, a CP1 imported assigned amount unit to meet the participant’s obligations under section 63 in respect of any emissions from any activities listed in Schedule 3 or 4 carried out by the participant after 31 December 2012.

    “(2) If at any time the Registrar discovers that a CP1 imported assigned amount unit has been transferred into a surrender account to meet a participant’s obligations under section 63 in respect of any emissions from any activities listed in Schedule 3 or 4 carried out by the participant after 31 December 2012, the Registrar must—

    • “(a) reverse the transfer; and

    • “(b) notify the participant and the chief executive responsible for Part 4 that the transfer has been reversed.

    “(3) If a transfer that is reversed under subsection (2) means that a participant has not surrendered the number of units by the due date as required under any section of this Act, the chief executive responsible for Part 4 may give a notice to the participant under section 121(3)(a).

    “(4) In this section and section 19, CP1 imported assigned amount unit means an assigned amount unit that is issued out of the initial assigned amount of a Party, other than New Zealand, during the first commitment period.”