Banking and borrowing

Heading: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5ZF Power to bank or borrow
Banking

(1)

If the total emissions in an emissions budget period are lower than the emissions budget for that period, the excess reduction may be carried forward to the next emissions budget period (banked).

(2)

Banking provides that the emissions budget for the next emissions budget period will be increased by the amount carried forward.

Borrowing

(3)

If the total emissions in an emissions budget period are greater than the emissions budget for that emissions budget period, an amount from the next emissions budget may be carried back to the preceding emissions budget period (borrowed).

(4)

Borrowing provides that the emissions budget for the next emissions budget period will be reduced by the amount carried back.

(5)

The amount carried back under subsection (3) must not exceed 1% of the emissions budget for the next emissions budget period.

(6)

The Minister must decide whether to bank or borrow, and must determine the extent to which banking or borrowing is permitted.

(7)

Before the Minister makes a decision under subsection (6),—

(a)

the Commission must, in its report on an emissions budget period, provide advice on the quantity of emissions that may be banked or borrowed between 2 adjacent emissions budget periods; and

(b)

the Minister must have regard to that advice.

Section 5ZF: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).