Reprint as at 1 January 2021

Coat of Arms of New Zealand

Climate Change Response Act 2002

Public Act
 
2002 No 40
Date of assent
 
18 November 2002
Commencement
 
see section 2
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry for the Environment.

Contents

1Title
2Commencement
2AApplication of Schedules 3 and 4
2BOrders in Council in relation to subparts 2 and 4 of Part 5 of Schedule 3 (Agriculture)
2CEffect of overlapping application of subparts of Part 5 of Schedule 3 (Agriculture)
3Purpose
3ATreaty of Waitangi (Te Tiriti o Waitangi)
3BConsultation about certain regulations, orders, and notices
4Interpretation
4AAGreenhouse gas definition may be amended to add gases
4ATransitional, savings, and related provisions
5Act binds the Crown
5AClimate Change Commission established
5BPurposes of Commission
5CCommission is Crown entity
5DMembership of Commission
5EProcess for appointment of members of Commission
5FEstablishment and membership of nominating committee
5GRole of nominating committee
5HMatters Minister must have regard to before recommending appointment of member of Commission
5IMembers’ term of office
5JCommission’s functions
5KReports to Government
5LTabling and publication of Commission’s reports
5MMatters Commission must consider
5NConsultation
5OCommission must act independently
5PObligation to maintain confidentiality
5QTarget for 2050
5RReview of inclusion of emissions from international shipping and aviation in 2050 target
5SOther 2050 target reviews
5TRecommendations to amend 2050 target
5UGovernment response to target review recommendations
5VInterpretation
5WPurpose of this subpart
5XDuty of Minister to set emissions budgets and ensure they are met
5YContents of emissions budgets
5ZHow emissions budgets are to be met
5ZACommission to advise Minister
5ZBMinister’s response to Commission
5ZCMatters relevant to advising on, and setting, emissions budgets
5ZDPublication of emissions budgets
5ZEWhen emissions budgets may be revised
5ZFPower to bank or borrow
5ZGRequirement for emissions reduction plan
5ZHCommission to advise on emissions reduction plans
5ZIMinister to prepare and make emissions reduction plan publicly available
5ZJCommission to monitor progress towards meeting emissions budgets
5ZKCommission to report annually on results of monitoring
5ZLCommission to report at end of emissions budget period
5ZMEffect of failure to meet 2050 target and emissions budgets
5ZN2050 target and emissions budget are permissive considerations
5ZOGuidance for departments
5ZOARecommendations about limits and price control settings for units
5ZOBRecommendations about decreased or increased phase-out rates
5ZPNational climate change risk assessment
5ZQPreparation of national climate change risk assessment
5ZRMinister must prepare first national climate change risk assessment
5ZSNational adaptation plan
5ZTNational adaptation plan must be presented to Parliament and made publicly available
5ZUProgress reports on national adaptation plan
5ZVMinister must respond to progress report
5ZWMinister or Commission may request certain organisations to provide information on climate change adaptation
5ZXRegulations relating to requiring provision of information
6Minister of Finance may direct Registrar regarding establishment of Crown holding accounts and carry out trading activities with respect to units
6AMinister’s power to sell by auction
7Minister of Finance may give directions to Registrar regarding accounts and units
8Registrar must give effect to directions of Minister of Finance
8AMinister of Finance must publish directions
9Minister of Finance may obtain information from inventory agency and Registrar
9AFunctions of chief executive
9BDelegation by chief executive
10Purpose of Registry
11EPA to appoint Registrar
12Registrar responsible for Registry
13Registrar may refuse access to, or suspend operation of, Registry
14Registrar must give effect to directions
15Registrar to allocate unique numbers
16Carry-over of certain Kyoto units [Repealed]
17Commitment period reserve [Repealed]
17APower of Registrar to delegate
18Form and content of unit register
18AOpening holding accounts
18BClosing holding accounts
18CTransfer of units
18CAEffect of surrender and cancellation
18CBRestriction on surrender of assigned amount units [Repealed]
18CCRestriction on surrender of assigned amount units issued during first commitment period [Repealed]
18CDEffect of surrendering restricted assigned amount units [Repealed]
18DSuccession
18ETrusts, representatives, and assignees of bankrupts
19Retirement of Kyoto units by the Crown [Repealed]
20Transactions must be registered
21Registration procedure for Kyoto units [Repealed]
21AARegistration procedure for New Zealand units and approved overseas units
21AElectronic registration
21BDefective applications
22Transactions take effect when registered
23Receiving Kyoto units from overseas registries [Repealed]
23AReceiving New Zealand units and approved overseas units from overseas registries or international transaction bodies
24Priority of registration
25Correction of unit register
26Unit register must be open for search
27Information accessible by search
28Search of unit register
29Printed search result receivable as evidence
30Recovery of fees
30AThe Crown or Registrar not liable in relation to searches in certain cases
[Repealed]
30BExpiry of long-term certified emission reduction units [Repealed]
30CReplacement of certain long-term certified emission reduction units [Repealed]
30DExpiry of temporary certified emission reduction units [Repealed]
30EConversion of New Zealand units into designated assigned amount units for sale overseas or cancellation [Repealed]
30FRestrictions on certain New Zealand units allocated to landowners of pre-1990 forest land
30GRegulations relating to Part 2
30GARegulations for auctions to sell New Zealand units
30GBRegulations about limits and price control settings for units
30GCRequirements for regulations about limits and price control settings for units
30GDRegulations for auction monitor
30GESharing information with auction monitor
30GFObligation of confidentiality on auction monitor
30GGOffence for breach of auction monitor’s obligation of confidentiality
30HConsultation and commencement for certain regulations about units and auctions
30IIncorporation by reference in regulations made under section 30G
30IAMinister must obtain greenhouse gas reductions to match certain excess units
30JSigning false declaration with respect to regulations made under section 30G or 30GA
30KProviding false or misleading information to Registrar
30LMeaning of infringement offence and infringement fee
30MRegulations about infringement offences
30NConsultation and commencement for regulations about infringement offences
30OProceedings for infringement offences
30PAppointment of enforcement officers
30QWhen infringement notice may be issued
30RInfringement notice may be revoked
30SWhat infringement notice must contain
30THow infringement notice may be served
30UPayment of infringement fees
30VReminder notices
30WRegulations setting price of carbon
31Meaning of greenhouse gas
32Primary functions of inventory agency
33Inventory agency under direction of Minister
34Record keeping
35Publication
36Authorisation of inspectors
37Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases
38Limitation on power of entry under section 37
39Power of entry for inspection
40Applications for warrants
41Entry of defence areas
42Proof of authority must be produced
43Notice of entry
44Information obtained under section 39 or section 40 only admissible in proceedings for alleged breach of regulations made under section 50(2)
45Return of items seized
45AProtection of persons acting under authority of this Part
46Failing to provide required information to inventory agency
47Obstructing, hindering, resisting, or deceiving person exercising power under Part
48Signing false declaration in respect of regulations made under section 50
48AProviding false or misleading information to Registrar [Repealed]
49Reporting
50Regulations
51Incorporation by reference in regulations made under section 50
52Inventory agency must report to Minister on certain matters before certain regulations are made
53Consequential amendments [Repealed]
54Participants
55Associated persons
56Registration as participant in respect of activities listed in Schedule 3
57Applicant to be registered as participant in respect of activities listed in Schedule 4
58Removal from register of participants in respect of activities listed in Schedule 4
59Removal from register of participants in respect of activities listed in Schedules 3 and 4
59ARemoval from register if participant never carried out activity
60Exemptions in respect of activities listed in Schedule 3
60AExemption for participants in activity listed in Part 1 of Schedule 4
60BIncorporation by reference in order made under section 60 or 60A
61Requirement to have holding account
62Monitoring of emissions and removals
63Liability to surrender units to cover emissions
63AModification of liability to surrender units to cover certain emissions [Repealed]
64Entitlement to receive New Zealand units for removal activities
64ATransfer of units allocated, or entitled to be received or reimbursed, less any units that must be surrendered or repaid
64AModification of entitlement to receive New Zealand units for removal activities [Repealed]
65Annual emissions returns
66Quarterly returns for other removal activities
67Retention of emissions records
68Issuing New Zealand units
69Notification of intention regarding New Zealand units [Repealed]
70Allocation plan issued
71Correction of allocation plans [Repealed]
72Allocation in respect of pre-1990 forest land [Repealed]
73Minister to appoint person to hold certain New Zealand units [Repealed]
74Allocation to owners of fishing quota [Repealed]
75Consultation on pre-1990 forest land allocation plan [Repealed]
76Consultation on fishing allocation plan [Repealed]
77Determinations made in accordance with allocation plan [Repealed]
78Power to revoke and replace determinations [Repealed]
79Effect of new determination [Repealed]
80Criteria for allocation of New Zealand units to industry
81Entitlement to provisional allocation for eligible industrial activities
82Entitlement to allocation for eligible industrial activities where provisional allocation not received
83Annual allocation adjustment
84Closing allocation adjustment
84ARegulations setting decreased phase-out rates
84ATemporary suspension of allocation entitlement for eligible industrial activities [Repealed]
84BRegulations setting increased phase-out rates
84CProcedure for regulations setting phase-out rates
85Allocation of New Zealand units in relation to agriculture
85ATemporary suspension of phase-out rate for assistance under section 85(2)
85BTemporary suspension of allocation entitlement for eligible agricultural activities [Repealed]
86Applications for allocation of New Zealand units for industry and agriculture
86AProvisional allocation to industry in and after 2013
86BDecisions on applications for allocations of New Zealand units to industry
86BADecisions on applications for allocations of New Zealand units to agriculture
86BBTransfer of allocated units to industry, less any units that must be surrendered or repaid
86BCTransfer of allocated units to agriculture, less any units that must be surrendered or repaid
86CReconsideration of allocation decisions
86DRetention of records and materials in relation to allocation
86EEPA may require further information for purpose of carrying out functions under subpart
86FBalance of units at end of true-up period or other balance date [Repealed]
87Functions of EPA
87ADelegation by EPA
88Directions to EPA
89EPA to publish certain information
89AEPA to publish participant data on emissions and removals
90EPA may prescribe form of certain documents
91Approval of unique emissions factors
91ACorrection of unique emissions factors
92Recognition of verifiers
93Appointment of enforcement officers
94Power to require information
95Power to inquire
96Inquiry before District Court Judge
97No criminal proceedings for statements under section 95 or 96
98Expenses in relation to inquiries
99Obligation to maintain confidentiality
100Power of entry for investigation
101Applications for warrants
102Proof of authority must be produced
103Notice of entry
104Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under ETS participant provisions
105Return of items seized
106Protection of persons acting under authority of this Part
107Applications for emissions rulings
107AInsufficient information provided for ruling on entire application
108Matters in relation to which EPA may decline to make emissions rulings
109Making of emissions rulings
110Notice of emissions rulings
111Confirmation of basis of emissions rulings
112Notifying EPA of changes relevant to or failure to comply with emissions rulings
113Correction of emissions rulings
114Cessation of emissions rulings
115Appeal from decisions of EPA
116Effect of emissions rulings
117EPA may publish certain aspects of emissions rulings
118Submission of final emissions returns
119Power to extend date for emissions returns
120Amendment to emissions returns by EPA
120ALiabilities, penalties, and interest when emissions returns amended
121Assessment if default made in submitting emissions return
122Amendment or assessment presumed to be correct
123Effect of amendment or assessment
124Reimbursement of units by EPA
125Repayment of units by persons in case of error
126Obligation to surrender or repay units not suspended by review or appeal
127Time bar for amendment of emissions returns
128Amendments and assessments made by electronic means
129Offences in relation to failure to comply with various provisions
130Offence for breach of section 99
131Offence for failure to provide information or documents
132Other offences
133Evasion or similar offences
134Penalty for failing to surrender or repay units by due date
134APenalty for failing to submit emissions return by due date
134BPenalty for failing to submit annual or closing allocation adjustment by due date
134CPenalty for submitting incorrect emissions return
134DPenalty for providing incorrect information in allocation application or adjustment
135Date for payment of penalty
135ADeferred payment arrangements for payments of penalties
136Penalties are debt due to Crown
137Interest for late payment
138Obligation to pay penalty not suspended by appeal
138APenalties to be paid into Crown account
139Liability of body corporate
140Liability of directors and managers of companies
141Liability of companies and persons for actions of director, agent, or employee
142Limitation period for commencement of proceedings
143Evidence in proceedings
144Request for review of decisions
145Right of appeal to District Court
146Appeals to High Court on questions of law only
147Giving of notices by EPA
148Giving of notices to EPA
149Sharing information
150Formation of consolidated group
151Changes to consolidated groups
151AAddition of activities to consolidated groups
152Nominated entities
153Effect of being member of consolidated group
154Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4 [Repealed]
155Ceasing to be member of consolidated group
156Effect of ceasing to be member of consolidated group
156ARemoval of activities from consolidated groups
157Unincorporated bodies
157AChanges to unincorporated bodies that are participants
158Compensation for participants where public works result in liability to surrender units
159Recovery of costs
160Review of operation of emissions trading scheme
161Appointment and conduct of review panel
161ARegulations in relation to eligible industrial activities
161BAustralian eligible industrial activities [Repealed]
161CEligible industrial activities
161DPower to require information for purposes of allocation to industry
161ERequirements in respect of notice given under section 161D
161FConsultation on activities that may be prescribed as eligible industrial activities [Repealed]
161GRegulations in relation to eligible agricultural activities
161HPower to request information showing output from eligible agricultural activities
162Order in Council adding further activity to Part 2 of Schedule 4
162AOrders are confirmable instruments
163Regulations relating to methodologies and verifiers
164Regulations relating to unique emissions factors
165Regulations relating to offsetting of pre-1990 forest land [Repealed]
166Consultation and commencement for regulations about methodologies, verifiers, and unique emissions factors
167Regulations relating to fees and charges
168Other regulations
169Incorporation by reference in certain regulations
170Effect of amendments to, or replacement of, material incorporated by reference in regulations
171Proof of material incorporated by reference
172Effect of expiry of material incorporated by reference
173Requirement to consult
174Public access to material incorporated by reference
175Application of Legislation Act 2012 to material incorporated by reference
176Application of Regulations (Disallowance) Act 1989 to material incorporated by reference [Repealed]
177Application of Standards and Accreditation Act 2015 not affected
178Recovery of fees or charges
178AOption to pay money instead of surrendering, repaying, or reimbursing units
178BIssuing New Zealand units to meet surrender obligations
178CFixed price (for option to pay money instead of surrendering, repaying, or reimbursing units)
[Repealed]
179Forest land to be treated as deforested in certain cases
179AForest land may not be treated as deforested in certain cases
[Repealed]
180Participant in respect of pre-1990 forest land
181When deforestation to be treated as occurring in respect of pre-1990 forest land
182Offsetting in relation to pre-1990 forest land [Repealed]
183Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land
183ACertain applications not otherwise permitted by section 183
183BApplications for exemption for some Maori land or land with 10 or more owners
184Exemptions for deforestation of land with tree weeds
185Effect of exemption
186Methodology for pre-1990 forest land cleared in 8 years or less
[Repealed]
186APersons who own pre-1990 forest land may submit offsetting forest land applications to EPA
186BCriteria for approving offsetting forest land applications
186CConditions applicable to offsetting forest land
186DRequirements relating to offsetting forest land
186EDeforesting pre-1990 offsetting forest land before usual rotation period of forest species on pre-1990 forest land
186FRegulations relating to offsetting
186GEPA may revoke approval in certain circumstances
186HTreatment of allocations in respect of pre-1990 forest land that is offset
186IParticipant in respect of pre-1990 offsetting forest land
186JMethodology for pre-1990 offsetting forest land cleared after usual rotation period is completed
[Repealed]
187Conditions on registration as participant in respect of certain activities relating to post-1989 forest land
187AEPA to give public notice of criteria for assessing risk of tree weed spread
188Registration as participant in respect of post-1989 forest land
188APerson ceases to be participant in respect of post-1989 forest land if natural event permanently prevents re-establishing forest on that land
188BNotice to forestry participant if their registration added or removed
188CNotice to interested party if forestry participant’s registration added or removed
189Emissions returns for post-1989 forest land activities
190Special rules regarding surrender of units in relation to post-1989 forest land
191Ceasing to be registered as participant in respect of post-1989 forest land
191AIf participant has never carried out activity in carbon accounting area
192Effect of transmission of interest in post-1989 forest land
193Emissions returns in relation to transmitted interests
194Information about status of forest land
[Repealed]
194AInput returns may be submitted for certain emissions returns for forestry activities
194BEPA may do calculations based on input return
194CRegulations for input returns
195Notification of status of forest land
196Meaning of forestry classification
196AEPA may give forestry classifications to areas of land
196APower to withdraw or suspend certain draft allocation plans [Repealed]
196BEffect of forestry classifications
196CChange of forestry classification to correct error
196DChange of forestry classification to update for changes
196EForestry classification with effect before date classification given
196FRegulations for forestry classifications
197Entitlement to units for removals from grant-funded forests
197ARegulations for grant-funded forests
[Repealed]
198Registration as participant by purchasers of obligation fuel
199Historical information sufficient to satisfy EPA
200Effect of purchasing less than threshold level of obligation fuel
201Effect of registration by purchasers of obligation fuel
202Activities added to Part 2 of Schedule 3
202AOrders are confirmable instruments
203Treatment of obligation fuels
[Repealed]
204Participant with respect to mining coal or natural gas
205Mining natural gas in exclusive economic zone and continental shelf
206Obligation with respect to combusting used oil, waste oil, and waste
207Obligation with respect to mining coal
208Purchase of coal or natural gas from certain related companies of Part 3 of Schedule 3 participant
209Registration as participant by purchasers of coal or natural gas
210Historical information sufficient to satisfy EPA
211Effect of purchasing less than threshold level of coal or natural gas
212Effect of registration by purchasers of coal or natural gas
[Repealed]
213Participant in respect of subpart 4 of Part 5 of Schedule 3
214Units not required to be surrendered for fertilisers embedded in products
215Ministers to report on alternative pricing system for farm-level agriculture emissions
215Effect of purchasing or farming less than threshold level [Repealed]
216Regulations for voluntary reporting or surrender for animals–farmer or fertiliser–farmer activity
216Effect of registration by farmers [Repealed]
[Repealed]
217Transitional provision for penalties
218Transitional provision for voluntary reporting [Repealed]
219Transitional provision for surrender obligations of certain participants
220Commission to report on progress towards meeting farm-level obligations
221Additional transitional provisions for Part 3 of Schedule 4 participants [Repealed]
222Transitional provisions regarding regulations that replace existing unit register regulations [Repealed]
222ATransitional provision for liability to surrender units to cover emissions from activities relating to liquid fossil fuels, stationary energy, and industrial processes [Repealed]
222BTransitional provision for entitlement to receive New Zealand units for removal activities [Repealed]
222CTransitional provision permitting payment of money instead of surrender of units to cover emissions [Repealed]
222DIssuing New Zealand units to meet surrender obligation [Repealed]
222ETransitional provisions relating to reporting [Repealed]
222FTransitional provision for allocation to industry [Repealed]
222GTransitional provision regarding prohibition on ability to export New Zealand units [Repealed]
222HTransitional provision for unincorporated bodies
223Establishment of Household Fund [Repealed]
224Gazetting of targets [Repealed]
225Regulations relating to targets [Repealed]
226Overview of functions and responsibilities of EPA and agencies under this Part, Customs and Excise Act 2018, and Land Transport Act 1998
227Synthetic greenhouse gas levy imposed
228Person who registers leviable motor vehicle responsible for paying levy
229Importer of leviable goods must pay levy
230Levies are debt due to the Crown
231Penalties for failure to pay levy [Repealed]
232Application of provisions of Customs and Excise Act 2018
233Rate of synthetic greenhouse gas levy
234Transitional provision for synthetic greenhouse gas levy [Repealed]
235Temporary suspension of levy set by section 233 [Repealed]
236Maximum price of carbon for purpose of levy calculation
237Levy rate exclusive of GST
238Levy rate for period from 1 July 2013 to 31 December 2013 [Repealed]
239Levy rate to apply for single calendar year on and after 1 January 2014
240Agencies to pay levy into Crown Bank Account
241Agencies to provide information to EPA quarterly
242Agencies and EPA to share information
243Circumstances where levy may be refunded
244Exemptions from payment of synthetic greenhouse gas levy
245Regulations specifying levy rates
246Regulations relating to synthetic greenhouse gas levy
247Process for making orders and regulations [Repealed]
248Collecting information and keeping records
249Application of section 88 (Directions to EPA)
250EPA to publish information relating to levies
251Recognition of verifiers
252Enforcement officers
253Power to require information
254Power to inquire
255Inquiry before District Court Judge
256Obligation to maintain confidentiality
257Power of entry for investigation, warrants, etc
258Regulations relating to verifiers
259Offence in relation to failure to collect data and keep records
260Failure to provide information or documents
261Other offences
262Offence for breach of confidentiality
263Evasion
264Offence in relation to release of synthetic greenhouse gases
265Defence for release of synthetic greenhouse gas
266Limitation period for commencement of proceedings
267Evidence in proceedings
268Liability of body corporate, directors, managers of companies, companies, and persons for actions of directors, agents, and employees
269Review of operation and effectiveness of levy
270Appointment and conduct of independent panel
Reprint notes
 
1 Title

This Act is the Climate Change Response Act 2002.

Part 1 Preliminary provisions

2 Commencement

This Act comes into force on a date to be appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.

Section 2: section 1, Part 1, subpart 3 of Part 2, and Part 3 (other than section 50(1)(a) and (c)–(h) and section 51) brought into force, on 1 August 2003, by clause 2 of the Climate Change Response Act Commencement Order 2003 (SR 2003/151).

Section 2: subparts 1 and 2 of Part 2 and sections 50(1)(a) and (c)–(h) and 51 brought into force, on 19 November 2007, by clause 2 of the Climate Change Response Act Commencement Order 2007 (SR 2007/336).

2A Application of Schedules 3 and 4

(1)

Any provision in this Act that imposes an obligation on, or provides an entitlement to, a person in respect of an activity listed in Schedule 3 or 4

(a)

does not apply to that person unless—

(i)

the Part or subpart in Schedule 3 or 4 in which the activity is listed applies; and

(ii)

the person, if carrying out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 (for fertiliser–farmer activities or animals–farmer activities), falls within a class of persons prescribed in an Order in Council that applies that subpart; and

(b)

applies subject to sections 2C(3), 217 to 219, 178A, and 178B.

(2)

Part 1 of Schedule 3 and Part 1 of Schedule 4 apply on and after 1 January 2008.

(2A)

Part 3 of Schedule 4 applies on and after 1 July 2013.

(3)

Part 2 of Schedule 3 and Part 4 of Schedule 4 apply on and after 1 January 2009.

(4)

Subpart 1 of Part 3 of Schedule 3, subpart 1 of Part 4 of Schedule 3, and subpart 1 of Part 2 of Schedule 4 apply on and after 1 January 2010.

(5)

[Repealed]

(5A)

Subpart 1 of Part 5 of Schedule 3 (for fertiliser–processor activities)—

(a)

applies on and after 1 January 2011; but

(b)

is affected by section 219, which provides that emissions released during the following excluded period do not require units to be surrendered: the period—

(i)

starting on 1 January 2011; and

(ii)

ending on a date determined by that section (which may be 31 December 2024 or another date as early as 1 July 2022).

(5B)

Subpart 2 of Part 5 of Schedule 3 (for fertiliser–farmer activities)—

(a)

applies on and after a date appointed by the Governor-General by Order in Council (see section 2B); but

(b)

is affected by section 219, which provides that emissions released during the following excluded period do not require units to be surrendered: the first year in which that subpart 2 applies to the persons, or class of persons, carrying out that activity.

(5C)

Subpart 3 of Part 5 of Schedule 3 (for animals–processor activities)—

(a)

applies on and after 1 January 2011; but

(b)

is affected by section 219, which provides that emissions released during the following excluded period do not require units to be surrendered: the period—

(i)

starting on 1 January 2011; and

(ii)

ending on a date determined by that section (which may be 31 December 2024 or another date as early as 1 July 2022).

(5D)

Subpart 4 of Part 5 of Schedule 3 (for animals–farmer activities)—

(a)

applies on and after 1 January 2024 or a later date appointed by the Governor-General by Order in Council (see section 2B); but

(b)

is affected by section 219, which provides that emissions released during the following excluded period do not require units to be surrendered: the first year in which that subpart 4 applies to the persons, or class of persons, carrying out that activity.

(6)

[Repealed]

(7)

Subpart 2 of Part 4 of Schedule 3, Part 6 of Schedule 3, and subpart 3 of Part 2 of Schedule 4 apply on and after 1 January 2011.

(7A)

Part 1A of Schedule 3 applies on and after 1 January 2013.

(7B)

Subpart 2 of Part 3 of Schedule 3 applies on and after 1 January 2014.

(8)

Part 1A of Schedule 4 applies on and after 1 January 2023.

(9)

[Repealed]

(10)

[Repealed]

(11)

[Repealed]

(12)

[Repealed]

(13)

[Repealed]

(14)

Subpart 2 of Part 2 of Schedule 4 applies on and after a date to be appointed by the Governor-General by Order in Council.

(15)

[Repealed]

(16)

[Repealed]

(17)

[Repealed]

(18)

[Repealed]

(19)

[Repealed]

Section 2A: inserted, on 26 September 2008, by section 4 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 2A(1): substituted, on 8 December 2009, by section 4(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(1)(a)(ii): amended, on 23 June 2020, by section 4(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(1)(b): amended, on 23 June 2020, by section 4(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(1)(b): amended, on 1 January 2019, by section 9 of the Climate Change Response (Removal of Transitional Measure) Amendment Act 2016 (2016 No 24).

Section 2A(1)(b): amended, on 1 January 2013, by section 4(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(2): amended, on 1 July 2013, by section 4(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(2A): inserted, on 1 July 2013, by section 4(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(3): amended, on 23 June 2020, by section 4(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(3): amended, on 1 January 2013, by section 4(4) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(4): amended, on 23 June 2020, by section 4(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(5): repealed, on 23 June 2020, by section 4(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(5A): inserted, on 23 June 2020, by section 4(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(5B): inserted, on 23 June 2020, by section 4(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(5C): inserted, on 23 June 2020, by section 4(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(5D): inserted, on 23 June 2020, by section 4(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(6): repealed, on 23 June 2020, by section 4(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(7A): inserted, on 1 January 2013, by section 4(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(7B): inserted, on 1 January 2013, by section 4(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(8): replaced, on 23 June 2020, by section 4(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(9): repealed, on 23 June 2020, by section 4(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 2A(10): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(11): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(12): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(13): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(15): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(16): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(17): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(18): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(19): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

2B Orders in Council in relation to subparts 2 and 4 of Part 5 of Schedule 3 (Agriculture)

(1)

This section relates to an Order in Council made under section 2A(5B) or (5D), which appoints a date on and after which subpart 2 or 4 of Part 5 of Schedule 3 (the subpart) applies (for fertiliser–farmer activities or animals–farmer activities).

(2)

The order must—

(a)

be made on the recommendation of the Minister; and

(b)

appoint a date that is 1 January in a year; and

(c)

be made at least 1 year before the date appointed by the order.

(3)

The order may provide that the subpart applies, on and after the date appointed by the order,—

(a)

specifically to 1 or more classes of person who carry out an activity listed in the subpart; or

(b)

generally, to all persons who carry out an activity listed in the subpart.

(4)

Before recommending the making of the order, the Minister must comply with subsections (5) and (6).

(5)

The Minister must have regard to—

(a)

the need for the EPA to be able to verify information contained in emissions returns of the persons who will become participants in an activity listed in the subpart by operation of the order; and

(b)

the likelihood that, as a result of becoming participants by operation of the order, persons carrying out an activity listed in the subpart will reduce their emissions; and

(c)

the desirability of minimising—

(i)

the compliance and administration costs of persons who will become participants in an activity listed in the subpart by operation of the order; and

(ii)

the administration costs of the Crown in administering the emissions trading scheme.

(6)

The Minister must consult, or be satisfied that the chief executive has consulted, the persons (or representatives of those persons) that appear to the consulter likely to have an interest in the order.

Section 2B: replaced, on 23 June 2020, by section 5 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

2C Effect of overlapping application of subparts of Part 5 of Schedule 3 (Agriculture)

(1)

This section applies—

(a)

to the fertiliser–processor and fertiliser–farmer subparts (of Part 5 of Schedule 3) at any time that those subparts apply at the same time (because of an Order in Council made under section 2A(5B)); and

(b)

to the animals–processor and animals–farmer subparts (of Part 5 of Schedule 3) on and after—

(i)

1 January 2024; or

(ii)

if an Order in Council is made under section 2A(5D), the date appointed in that order.

(2)

If this section applies, then regulations made under section 163(1) may require—

(a)

a person carrying out a fertiliser–processor activity and a person carrying out a fertiliser–farmer activity to—

(i)

collect data or other information relating to the same synthetic fertiliser; and

(ii)

calculate emissions relating to the same synthetic fertiliser; or

(b)

a person carrying out an animals–processor activity and a person carrying out an animals–farmer activity to—

(i)

collect data or other information relating to the same ruminant animals, pigs, horses, or poultry; and

(ii)

calculate emissions relating to the same ruminant animals, pigs, horses, or poultry.

(3)

However,—

(a)

on and after the first day in respect of which the person carrying out a fertiliser–farmer activity is required to surrender units for emissions relating to the fertiliser, this Act no longer applies to the person carrying out the fertiliser–processor activity in relation to that fertiliser; and

(b)

on and after the first day in respect of which the person carrying out an animals–farmer activity is required to surrender units for emissions relating to the ruminant animals, pigs, horses, or poultry, this Act no longer applies to the person carrying out the animals–processor activity in relation to those ruminant animals, pigs, horses, or poultry.

(4)

If an Order in Council is made under section 2A(5B) that has the effect of applying the fertiliser–farmer subpart to all persons who carry out a fertiliser–farmer activity, then section 2A(5A) and the fertiliser–processor subpart are repealed on the first day in respect of which emissions from all persons carrying out a fertiliser–farmer activity may result in liability to surrender units.

(5)

On the first day on which, under section 2A(5D), the animals–farmer subpart applies to all persons who carry out an animals–farmer activity, and emissions from all persons carrying out the activity may result in liability to surrender units, section 2A(5C) and the animals–processor subpart are repealed.

(6)

If, by operation of subsection (3), (4), or (5), this Act no longer applies to a person carrying out a fertiliser–processor activity or an animals–processor activity, then—

(a)

section 54(4) applies, with any necessary modifications, to any person who has ceased, by operation of that subsection, to be a participant in respect of that activity; and

(b)

the person is not required to comply with section 59, but the EPA may, for the purposes of section 59(2), determine that the person has ceased to carry out the activity.

(7)

In this section and sections 2A, 2B, 216, and 219,—

animals–farmer subpart means subpart 4 of Part 5 of Schedule 3, and animals–farmer activity means an activity listed in that subpart

animals–processor subpart means subpart 3 of Part 5 of Schedule 3, and animals–processor activity means an activity listed in that subpart

fertiliser–farmer subpart means subpart 2 of Part 5 of Schedule 3, and fertiliser–farmer activity means an activity listed in that subpart

fertiliser–processor subpart means subpart 1 of Part 5 of Schedule 3, and fertiliser–processor activity means an activity listed in that subpart.

Section 2C: replaced, on 23 June 2020, by section 5 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

3 Purpose

(1)

The purpose of this Act is to—

(aa)

provide a framework by which New Zealand can develop and implement clear and stable climate change policies that—

(i)

contribute to the global effort under the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels; and

(ii)

allow New Zealand to prepare for, and adapt to, the effects of climate change:

(a)

enable New Zealand to meet its international obligations under the Convention, the Protocol, and the Paris Agreement, including (but not limited to)—

(i)

its obligation under Article 3.1 of the Protocol to retire Kyoto units equal to the number of tonnes of carbon dioxide equivalent of human-induced greenhouse gases emitted from the sources listed in Annex A of the Protocol in New Zealand in the first commitment period starting on 1 January 2008 and ending on 31 December 2012; and

(ii)

its obligation to report to the Conference of the Parties via the Secretariat under Article 12 of the Convention, Article 7 of the Protocol, and Article 13 of the Paris Agreement:

(b)

provide for the implementation, operation, and administration of a greenhouse gas emissions trading scheme in New Zealand that supports and encourages global efforts to reduce the emission of greenhouse gases by—

(i)

assisting New Zealand to meet its international obligations under the Convention, the Protocol, and the Paris Agreement; and

(ii)

assisting New Zealand to meet its 2050 target and emissions budgets:

(c)

provide for the imposition, operation, and administration of a levy on specified synthetic greenhouse gases contained in motor vehicles and also another levy on other goods to support and encourage global efforts to reduce the emission of those gases by—

(i)

assisting New Zealand to meet its international obligations under the Convention, the Protocol, and the Paris Agreement; and

(ii)

assisting New Zealand to meet its 2050 target and emissions budgets.

(2)

[Repealed]

(2)

A person who exercises a power or discretion, or carries out a duty, under this Act must exercise that power or discretion, or carry out that duty, in a manner that is consistent with the purpose of this Act.

(3)

[Repealed]

Section 3(1): substituted, on 26 September 2008, by section 5 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 3(1)(aa): inserted, on 14 November 2019, by section 4 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 3(1)(a): amended, on 23 June 2020, by section 6(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3(1)(a)(i): amended, on 23 June 2020, by section 6(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3(1)(a)(ii): amended, on 23 June 2020, by section 6(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3(1)(b): replaced, on 1 January 2013, by section 5 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 3(1)(b)(i): amended, on 23 June 2020, by section 6(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3(1)(b)(ii): replaced, on 23 June 2020, by section 6(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3(1)(c): inserted, on 1 January 2013, by section 5 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 3(1)(c)(i): amended, on 23 June 2020, by section 6(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3(1)(c)(ii): replaced, on 23 June 2020, by section 6(7) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3 first subsection (2): repealed, on 8 December 2009, by section 6(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 3(3): repealed, on 23 June 2020, by section 6(8) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

3A Treaty of Waitangi (Te Tiriti o Waitangi)

In order to recognise and respect the Crown’s responsibility to give effect to the principles of the Treaty of Waitangi,—

(a)
[Repealed]

(ab)

with respect to section 5G (which relates to nominations for the Climate Change Commission), particular attention is required to seeking nominations from iwi and Māori representative organisations:

(ac)

with respect to section 5H (which relates to appointments of members of the Commission), the Minister must, before recommending the appointment of a member to the Commission, have regard to the need for the Commission to have members who have technical and professional skills, experience, and expertise, and innovative approaches, relevant to the Treaty of Waitangi (Te Tiriti o Waitangi):

(ad)

with respect to sections 5ZG and 5ZI (which require the Minister to prepare and publish an emissions reduction plan), the Minister must include in a emissions reduction plan a strategy to recognise and mitigate the impacts on iwi and Māori of reducing emissions and must ensure that iwi and Māori have been adequately consulted on the plan:

(ae)

with respect to section 5ZS (which requires the Minister to prepare a national adaptation plan), the Minister must, in preparing a plan, take into account the economic, social, health, environmental, ecological, and cultural effects of climate change on iwi and Māori:

(b)

with respect to the following provisions (which relate to powers to make regulations or Orders in Council or to give notice in the Gazette), before recommending the making of regulations or an order, or giving notice in the Gazette, under those provisions, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulations, order, or notice:

(i)
(ii)
(iii)

section 30GA (auctions to sell New Zealand units):

(iv)

section 30GB (limits and price controls for units):

(v)

section 30GD (auction monitor):

(vi)

section 30M (infringement offences):

(via)

section 30W(1)(a) (price of carbon):

(vii)

section 60 (exemptions in respect of activities listed in Schedule 3):

(viii)

section 60A (exemptions for participants in activity listed in Part 1 of Schedule 4):

(ix)

section 84A or 84B (phase-out rates for eligible industrial activities):

(x)

section 161D(1)(a) (notice specifying description of activity in relation to industrial allocations), unless the only purpose of the notice is to require persons to provide electricity-related contracts or any information related to those contracts:

(xi)

section 161G (eligible agricultural activities):

(xii)

section 162 (adding further activity to Part 2 of Schedule 4):

(xiii)

section 163 (methodologies and verifiers):

(xiv)

section 164 (unique emissions factors):

(xv)

section 168(1)(nb) (New Zealand’s best practice forest management):

(xvi)

section 186F (pre-1990 offsetting forest land):

(xvii)

section 194C (input returns):

(xviii)

section 196F (forestry classifications):

(xix)

section 244 (exemptions from payment of synthetic greenhouse gas levy):

(xx)

section 246(1)(a) to (e) (synthetic greenhouse gas levy):

(xxi)

section 258 (verifiers):

(c)
[Repealed]

(d)

with respect to section 161 (which relates to the appointment and conduct of a review panel),—

(i)

if the Minister initiates a review under section 160(1) or 269(1) and appoints an independent panel under section 160(3) or 269(3), the Minister must ensure that the review panel has at least 1 member who, in the Minister’s opinion, has the appropriate knowledge, skill, and experience relating to the principles of the Treaty of Waitangi and tikanga Māori to conduct the review; and

(ii)

the review panel must consult with the representatives of iwi and Māori that appear to the panel likely to have an interest in the review; and

(iii)

the terms of reference for the review panel must incorporate reference to the principles of the Treaty of Waitangi.

(e)
[Repealed]

(f)
[Repealed]

(g)
[Repealed]

(h)
[Repealed]

(i)
[Repealed]

(j)
[Repealed]

Section 3A: inserted, on 8 December 2009, by section 7 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 3A(a): repealed, on 23 June 2020, by section 7(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(ab): inserted, on 14 November 2019, by section 5 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 3A(ac): inserted, on 14 November 2019, by section 5 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 3A(ad): inserted, on 14 November 2019, by section 5 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 3A(ae): inserted, on 14 November 2019, by section 5 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 3A(b): replaced, on 23 June 2020, by section 7(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(b)(via): inserted, on 1 January 2021, by section 209 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(c): repealed, on 23 June 2020, by section 7(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(d)(i): amended, on 1 January 2013, by section 6 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 3A(e): repealed, on 23 June 2020, by section 7(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(f): repealed, on 23 June 2020, by section 7(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(g): repealed, on 23 June 2020, by section 7(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(h): repealed, on 23 June 2020, by section 7(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(i): repealed, on 23 June 2020, by section 7(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3A(j): repealed, on 23 June 2020, by section 7(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

3B Consultation about certain regulations, orders, and notices

(1)

The Minister must comply with this section before recommending the making of regulations or an Order in Council, or giving notice in the Gazette, under any of the following:

(a)
(b)

section 30GA (auctions to sell New Zealand units):

(c)

section 30GB (limits and price controls for units):

(d)

section 30GD (auction monitor):

(e)

section 30M (infringement offences):

(ea)

section 30W(1)(a) (price of carbon):

(f)

section 60 (exemptions in respect of activities listed in Schedule 3), unless the Crown has signed a negotiated greenhouse agreement with the person exempted:

(g)

section 60A (exemptions for participants in activity listed in Part 1 of Schedule 4):

(h)

section 84A or 84B (phase-out rates for eligible industrial activities):

(i)

section 161D(1)(a) (notice specifying description of activity in relation to industrial allocations), unless the only purpose of the notice is—

(i)

to require persons to provide electricity-related contracts or any information related to those contracts; or

(ii)

to provide the Minister with the information necessary to determine whether any matter should be considered by a review under section 160:

(j)

section 161G(1)(a)(ii) (allocative baseline of eligible agricultural activity):

(k)

section 162 (adding further activity to Part 2 of Schedule 4):

(l)

section 163 (methodologies and verifiers):

(m)

section 164 (unique emissions factors):

(n)

section 168(1)(nb) (New Zealand’s best practice forest management):

(o)

section 186F (pre-1990 offsetting forest land):

(p)

section 194C (input returns):

(q)

section 196F (forestry classifications):

(r)

section 216 (voluntary reporting or surrender for animals–farmer or fertiliser–farmer activity):

(s)
[Repealed]

(t)

section 244 (exemptions from payment of synthetic greenhouse gas levy):

(u)

section 246(1)(a) to (e) (synthetic greenhouse gas levy):

(v)

section 258 (verifiers).

(2)

The Minister must also comply with this section before recommending the revocation of an Order in Council under section 60, 60A, or 244 (exemptions for various matters).

(3)

The Minister must be satisfied that 1 of the following has consulted the persons (or representatives of those persons) that appear to the consulter likely to be substantially affected by any regulations made in accordance with the recommendation, by any order made or revoked in accordance with the recommendation, or by the notice:

(a)

the Minister or the chief executive; or

(b)

for regulations made under section 30GB, 84A, or 84B, the Minister, the chief executive, or the Climate Change Commission.

(4)

The process for consultation must, to the extent practicable in the circumstances, include—

(a)

adequate and appropriate notice of the proposed terms of the recommendation or notice, and of the reasons for it; and

(b)

a reasonable opportunity for consulted persons to consider the recommendation or notice and make submissions; and

(c)

adequate and appropriate consideration of submissions.

(5)

This section does not apply to regulations made under the following if the Minister considers it is in the national interest that the regulations be made urgently:

(a)
(b)

section 30GA (auctions to sell New Zealand units):

(c)

section 30GB (limits and price controls for units):

(d)

section 30GD (auction monitor).

(6)

A failure to comply with this section does not affect the validity of any regulations, order, or notice to which it applies.

Section 3B: inserted, on 23 June 2020, by section 8 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3B(1)(ea): inserted, on 1 January 2021, by section 210(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 3B(1)(s): repealed, on 1 January 2021, by section 210(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

4 Interpretation

(1)

In this Act, unless the context otherwise requires,—

2050 target means the emissions reduction target set in section 5Q

account number means a unique account number assigned to a holding account by the Registrar under section 15(1)

agency means,—

(a)

in relation to the motor vehicle levy, the Registrar of Motor Vehicles; and

(b)

in relation to the goods levy, the chief executive of the New Zealand Customs Service

allocate, in relation to New Zealand units,—

(a)

means the allocation or provisional allocation of New Zealand units; but

(b)

does not include the transfer of New Zealand units

animal material has the same meaning as in section 4(1) of the Animal Products Act 1999

animal product has the same meaning as in section 4(1) of the Animal Products Act 1999

animal welfare export certificate means an animal welfare export certificate issued under section 46 of the Animal Welfare Act 1999

annual financial statements of the Government has the meaning given in section 2(1) of the Public Finance Act 1989

approved overseas unit means a unit, other than a New Zealand unit, that is—

(a)

issued (as defined by this section); and

(b)

prescribed as a unit that may be transferred to accounts in the Registry

associated person has the meaning given to it by subsection (3)

auction means an auction to sell New Zealand units under section 6A

biogenic methane means all methane greenhouse gases produced from the agriculture and waste sectors (as reported in the New Zealand Greenhouse Gas Inventory)

cancel, in relation to a unit, means the transfer of the unit to a cancellation account in the Registry with the effect specified in section 18CA(1)

carbon accounting area means an area of post-1989 forest land that—

(a)

is defined by a person who is registered or has applied to register as a participant under section 57 in relation to an activity listed in Part 1 of Schedule 4; and

(b)

meets any relevant criteria specified in regulations made under this Act; or

(c)

is constituted as a carbon accounting area by operation of section 188(7)(b) or 192(3)(b)

carbon dioxide equivalent, in relation to a greenhouse gas, means the amount of carbon dioxide (in tonnes) that would produce the same global warming as the amount of that gas, calculated in accordance with international climate change obligations

carbon equivalence, in relation to land that is the subject of an offsetting forest land application under section 186A, means that the offsetting forest land achieves, within the usual rotation period for forest species on the pre-1990 forest land, the same carbon stock as was contained in the pre-1990 forest land at the time of the clearing as determined in accordance with regulations made under section 186F

chief executive means the chief executive of the department that is, with the authority of the Prime Minister, responsible for the administration of this Act

clear, in relation to a tree,—

(a)

includes—

(i)

felling, harvesting, burning, removing by mechanical means, spraying with a herbicide intended to kill the tree, or undertaking any other form of human activity that kills the tree; and

(ii)

felling, burning, killing, uprooting, or destroying by a natural cause or event; but

(b)

does not include pruning or thinning

Climate Change Commission and Commission mean the Climate Change Commission established under section 5A

coal has the same meaning as in section 2(1) of the Crown Minerals Act 1991

Conference of the Parties means the Conference of the Parties to the Convention

consolidated group means a consolidated group formed under section 150

Convention

(a)

means the United Nations Framework Convention on Climate Change done at New York on 9 May 1992, a copy of the English text of which is set out in Schedule 1; and

(b)

includes any amendments made to the Convention that are, or will become, binding on New Zealand from time to time

Crown conservation contract means a written agreement with the Crown (including a concession granted in accordance with Part 3B of the Conservation Act 1987) for the removal and storage of greenhouse gases on post-1989 forest land that is Crown land managed or administered under the Conservation Act 1987 or any of the Acts listed in Schedule 1 of that Act

Crown holding account

(a)

means a holding account that is established and held by the Crown in accordance with a direction of the Minister of Finance under section 6; and

(b)

does not include a holding account opened by any other person on behalf of the Crown under section 18A

Crown land has the same meaning as in section 2(1) of the Crown Minerals Act 1991

dairy processing, in relation to milk or colostrum, means the first occasion, other than at a farm dairy, on which the milk or colostrum is made subject to heat treatment, freezing, separation, concentration, filtering, blending, extraction of milk components, and the addition of other material, including (but not limited to) food, ingredients, additives, or processing aids as defined in the Food Standards Code

deforest, in relation to forest land,—

(a)

means to convert forest land to land that is not forest land (see section 181, for example); and

(b)

includes deforestation after forest land is cleared, where section 179 applies

disposal facility means any facility, including a landfill,—

(a)

at which waste is disposed; and

(b)

at which the waste disposed includes waste from a household that is not entirely from construction, renovation, or demolition of a house; and

(c)

that operates, at least in part, as a business to dispose of waste; but

(d)

does not include a facility, or any part of a facility, at which waste is combusted for the purpose of generating electricity or industrial heat

dispose, in relation to waste,—

(a)

means—

(i)

the final or more than short-term deposit of waste into or onto land set apart for that purpose; or

(ii)

the incineration of waste by deliberately burning the waste to destroy it; but

(b)

does not include any deposit of biosolids for rehabilitation or other beneficial purposes

document means a document in any form whether or not signed or initialled or otherwise authenticated by its maker; and includes—

(a)

any writing on any material:

(b)

any information recorded or stored by means of any tape recorder, computer, or any other device; and any material subsequently derived from information so recorded or stored:

(c)

any label, marking, or other writing that identifies or describes any thing of which it forms part, or to which it is attached by any means:

(d)

any book, map, plan, graph, or drawing:

(e)

any photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced

electrical switchgear means fittings for—

(a)

controlling the distribution of electricity; or

(b)

controlling or protecting electrical circuits and electrical equipment; or

(c)

the transmission of electricity

eligible activity means—

(a)

an eligible agricultural activity; or

(b)

an eligible industrial activity

eligible agricultural activity means an activity or subclass of an activity listed in Part 5 of Schedule 3 in respect of which a person is required to surrender units for emissions under this Act

eligible industrial activity means an activity that is specified as an eligible industrial activity in regulations made under section 161A

eligible person means a person who meets any requirements for receiving an allocation of New Zealand units specified in, as relevant,—

(c)

any regulations made under this Act:

(d)

the pre-1990 forest land allocation plan

emissions,—

(a)

in relation to Parts 1A and 1B, means emissions of greenhouse gases; but

(b)

in relation to an activity listed in Schedule 3 or 4, means carbon dioxide equivalent emissions of greenhouse gases from the activity

emissions budget means the quantity of emissions that will be permitted in each emissions budget period as a net amount of carbon dioxide equivalent

emissions budget period means a 5-year period, except for the first 4-year period in the years 2022 to 2025, as specified in section 5X(3)

emissions reduction plan means a plan for achieving an emissions budget prepared in accordance with sections 5ZG to 5ZI

emissions return

(a)

means—

(i)

an annual emissions return submitted under section 65; or

(ii)

a quarterly emissions return submitted under section 66; or

(iii)

a final emissions return submitted under section 118; or

(iv)

an emissions return submitted under a provision of Part 5 or Schedule 1AA; and

(b)

includes the following as if they had been submitted in that form:

(i)

an emissions return as amended by the EPA under section 120; and

(ii)

the EPA’s assessment under section 121 of the matters that should have been in an emissions return; and

(c)

includes an emissions return that shows nil liability

emissions trading scheme means (except in section 3) the greenhouse gas emissions trading scheme established under this Act

entity, in relation to a group, means a reporting entity or a reporting entity’s subsidiary, within the meaning of section 5 of the Financial Reporting Act 2013

Environmental Protection Authority or EPA means the Environmental Protection Authority established by section 7 of the Environmental Protection Authority Act 2011

ETS participant provisions means Parts 4 to 5D of this Act

exempt land

(a)

means pre-1990 forest land that has been declared to be exempt land—

(i)

under section 183 or 183B; or

(ii)

under section 184 and in respect of which the conditions in section 184(6) have been met; but

(b)

does not include any forest land that met the definition in paragraph (a), but has been deforested, and in respect of which the number of units that would have been required to be surrendered in relation to an activity listed in Part 1 of Schedule 3, had the land not been exempt land, have been surrendered under section 187(2)

exotic forest species means a forest species that is not an indigenous forest species

export has a corresponding meaning to exportation in section 5(1) of the Customs and Excise Act 2018

farm dairy has the same meaning as in section 4(1) of the Animal Products Act 1999

financial year has the same meaning as in section 2(1) of the Public Finance Act 1989

Food Standards Code has the same meaning as in section 4(1) of the Animal Products Act 1999

forest land

(a)

means an area of land of at least 1 hectare that has, or is likely to have, tree crown cover from forest species of more than 30% in each hectare; and

(b)

includes an area of land that temporarily does not meet the requirements specified in paragraph (a) because of human intervention or natural causes but that is likely to revert to land that meets the requirements specified in paragraph (a); but

(c)

does not include—

(i)

a shelter belt of forest species, where the tree crown cover has, or is likely to have, an average width of less than 30 metres; or

(ii)

an area of land where the forest species have, or are likely to have, a tree crown cover of an average width of less than 30 metres, unless the area is contiguous with land that meets the requirements specified in paragraph (a) or (b)

forest species means a tree species capable of reaching at least 5 metres in height at maturity in the place where it is located, but does not include tree species grown or managed primarily for the production of fruit or nut crops

forestry activity means—

(a)

an activity listed in Part 1 or 1A of Schedule 3 (deforesting certain pre-1990 forest land or pre-1990 offsetting forest land); or

(b)

an activity listed in Part 1 of Schedule 4 (forestry on post-1989 forest land)

forestry classification has the meaning given in section 196

fugitive coal seam gas means gas released by the activity of mining coal as calculated in accordance with any regulations made under this Act

general cancellation account means an account in the Registry for the purpose of holding units on behalf of the Crown that are cancelled for any reason

goods means all kinds of movable property, including motor vehicles

goods levy means the synthetic greenhouse gas levy imposed by section 227(1)(b)

greenhouse gas means—

(a)

carbon dioxide (CO2):

(b)

methane (CH4):

(c)

nitrous oxide (N2O):

(d)

any hydrofluorocarbon:

(e)

any perfluorocarbon:

(f)

sulphur hexafluoride (SF6)

gross emissions means New Zealand’s total emissions from the agriculture, energy, industrial processes and product use, and waste sectors (as reported in the New Zealand Greenhouse Gas Inventory)

group has the same meaning as in section 5 of the Financial Reporting Act 2013

holding account means an account in the Registry for the purpose of holding units

import has a corresponding meaning to importation in section 5(1) of the Customs and Excise Act 2018

importer has the same meaning as in section 5(1) of the Customs and Excise Act 2018

indigenous forest species means a forest species that occurs naturally in New Zealand or has arrived in New Zealand without human assistance

indirect greenhouse gas

(a)

means a gas that—

(i)

reacts with other gases to form a greenhouse gas; or

(ii)

changes the chemistry of the atmosphere in a way that increases the lifetime of other greenhouse gases; and

(b)

includes, but is not limited to, carbon monoxide, nitrogen oxides, non-methane volatile organic compounds, and sulphur dioxide

industrial or trade premises means any premises used for any industrial or trade purposes, or any premises used for the storage, transfer, treatment, or disposal of waste materials or for other waste-management purposes; but does not include any production land

international climate change obligations means New Zealand’s international obligations under the Convention, the Protocol, or the Paris Agreement

international transaction body means a prescribed body that confirms the validity of transactions relating to accounting of greenhouse gas emissions

issued, in relation to an approved overseas unit, means—

(a)

issued by an overseas registry; or

(b)

issued in another way and approved by an international transaction body

inventory agency means the chief executive

landowner,—

(a)

in relation to Crown land, means the appropriate Minister (as that term is defined in section 2A of the Crown Minerals Act 1991); and

(b)

in relation to land other than Crown land, means—

(i)

the legal owner of a freehold estate in the land; or

(ii)

if the land is Maori customary land (as defined in section 4 of Te Ture Whenua Maori Act 1993), the person or persons who have title to the land as determined under Te Ture Whenua Maori Act 1993; or

(iii)

if the land is Maori freehold land (as defined in section 4 of Te Ture Whenua Maori Act 1993), the legal owner of the land

leviable goods means goods that contain a specified synthetic greenhouse gas, but does not include an air-conditioning system that is part of a motor vehicle

leviable motor vehicle means a motor vehicle that includes, as part of the motor vehicle, an air-conditioning system containing a specified synthetic greenhouse gas

levy year means the period of 12 months starting on 1 January and ending with the close of 31 December

local authority means a local authority within the meaning of the Local Government Act 2002

mandatory emissions return period means any of the following periods:

(a)

the first commitment period starting on 1 January 2008 and ending on 31 December 2012:

(b)

the 5-year period starting on 1 January 2013 and ending on 31 December 2017:

(c)

the 5-year period starting on 1 January 2018 and ending on 31 December 2022:

(d)

the 3-year period starting on 1 January 2023 and ending on 31 December 2025:

(e)

the 5-year period starting on 1 January 2026 and ending on 31 December 2030:

(f)

each consecutive 5-year period after that

Maori land has the same meaning as in section 4 of Te Ture Whenua Maori Act 1993

member, in relation to an unincorporated body, means a partner, joint venturer, trustee, joint owner of land, or other member of the body

merchantable timber means timber from the stem of a tree more than 10 years old, other than—

(a)

the stump; and

(b)

wood that is decayed or grossly distorted; and

(c)

wood that is less than 10 centimetres in diameter, excluding the bark

mining has the same meaning as in section 2(1) of the Crown Minerals Act 1991

Minister means the Minister who is, under the authority of any warrant or under the authority of the Prime Minister, responsible for the administration of this Act

motor vehicle has the same meaning as in section 2(1) of the Land Transport Act 1998

motor vehicle levy means the synthetic greenhouse gas levy imposed by section 227(1)(a)

natural gas means—

(a)

all gaseous hydrocarbons produced from wells, including wet gas and residual gas remaining after the extraction of condensate from wet gas; and

(b)

liquid hydrocarbons, other than condensate, extracted from wet gas and sold as natural gas liquids, for example, liquid petroleum gas; and

(c)

coal seam gas

net accounting emissions means the total of gross emissions and emissions from land use, land-use change, and forestry (as reported in the New Zealand Greenhouse Gas Inventory), less—

(a)

removals, including from land use, land-use change, and forestry (as reported in the New Zealand Greenhouse Gas Inventory); and

(b)

offshore mitigation

New Zealand Greenhouse Gas Inventory means the reports that are required under Articles 4 and 12 of the Convention, Article 7.1 of the Protocol, and Article 13.7 of the Paris Agreement and that are prepared in accordance with section 32(1)

New Zealand unit means a unit issued by the Registrar and designated as a New Zealand unit

nominated entity, in relation to a consolidated group, means an entity appointed under section 150(4)(b) or 152(3)(b) as the nominated entity of a consolidated group

obligation fuel means any fuel specified as obligation fuel in regulations made under this Act

obligation jet fuel means any jet fuel specified as obligation jet fuel in regulations made under this Act

offsetting forest land means land that the EPA has approved as offsetting forest land under section 186B

offshore mitigation means emissions reductions and removals, or allowances from emissions trading schemes,—

(a)

that originate from outside New Zealand; and

(b)

that are expressed as a quantity of carbon dioxide equivalent; and

(c)

that are robustly accounted for to ensure that, among other things, double counting is avoided; and

(d)

that either—

(i)

represent an actual additional, measurable, and verifiable reduction or removal of an amount of carbon dioxide equivalent; or

(ii)

are an emissions trading scheme allowance that triggers the reduction of carbon dioxide equivalent

operating, in relation to a disposal facility, means being in control of the facility

ordinary hours of business means the hours of 8 am to 6 pm from Monday to Friday

overseas registry means a prescribed overseas registry from which or to which units may be transferred to or from accounts in the Registry

Paris Agreement

(a)

means the Paris Agreement done at Paris on 12 December 2015, a copy of the English text of which is set out in Schedule 2A; and

(b)

includes any amendments made to the Paris Agreement that are, or will become, binding on New Zealand from time to time

participant means a person who is a participant under section 54

performance, in relation to ruminants and other farmed livestock, means the production statistics with respect to those animals, including, but not limited to, weight, milk production, lambing and calving percentage, and wool weight

post-1989 forest land means forest land that—

(a)

is one of the following:

(i)

land that was not forest land on 31 December 1989:

(ii)

land that was forest land on 31 December 1989 but was deforested in the period beginning on 1 January 1990 and ending on 31 December 2007:

(iii)

land that was pre-1990 forest land, other than exempt land,—

(A)

that was deforested on or after 1 January 2008; and

(B)

in respect of which any liability to surrender units arising in relation to an activity listed in Part 1 of Schedule 3 has been satisfied:

(iv)

land that was pre-1990 forest land, other than exempt land, that was deforested on or after 1 January 2013 and offset by pre-1990 offsetting forest land:

(v)

land that was pre-1990 offsetting forest land that was deforested after 1 January 2013 and in respect of which any liability to surrender units arising in relation to an activity listed in Part 1A of Schedule 3 has been satisfied:

(vi)

land that was exempt land—

(A)

that has been deforested; and

(B)

in respect of which the number of units that would have been required to be surrendered in relation to an activity listed in Part 1 of Schedule 3, had the land not been exempt land, have been surrendered under section 187(2):

(vii)

land that was exempt land that has been deforested more than 8 years ago; and

(b)

is not offsetting forest land or pre-1990 offsetting forest land

pre-1990 forest land

(a)

means forest land—

(i)

that was forest land on 31 December 1989; and

(ii)

that remained as forest land on 31 December 2007 (taking into account subsection (5)); and

(iii)

where the forest species on the forest land on 31 December 2007 consisted predominantly of exotic forest species; but

(b)

does not include any forest land that met the definition in paragraph (a), but—

(i)

has been deforested and in respect of which any liability to surrender units arising in respect of an activity listed in Part 1 of Schedule 3 has been satisfied; or

(ii)

was declared to be exempt land, has been deforested, and the number of units that would have been required to be surrendered in respect of an activity listed in Part 1 of Schedule 3 had the land not been exempt land have been surrendered under section 187(2)(b)

pre-1990 forest land allocation plan means the allocation plan issued under section 70 in respect of pre-1990 forest land

pre-1990 offsetting forest land means offsetting forest land that the EPA has noted as pre-1990 offsetting forest land on the register under section 186D(3)

primary representative means an individual appointed by an account holder as a primary representative of the account holder in accordance with any regulations made under Part 2

production land means any land used for the production of primary products (including agricultural, pastoral, horticultural, and forestry products); but does not include any buildings

Protocol

(a)

means the Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on 11 December 1997, a copy of the English text of which is set out in Schedule 2; and

(b)

includes any amendments made to the Protocol that are, or will become, binding on New Zealand from time to time

provisional allocation means a provisional allocation made under section 81

public notice means a notice published in a daily newspaper in each of the cities of Auckland, Wellington, Christchurch, and Dunedin, and made accessible via the Internet

publicly available, in relation to a document or information, means that the document or information is available at all reasonable times, free of charge, on an Internet site

recover, in relation to dispose,—

(a)

means the extraction of materials or energy from waste for further use or processing; and

(b)

includes making waste into compost

recycle, in relation to dispose, means the reprocessing of waste to produce new materials

registered,—

(a)

in relation to a motor vehicle, has the same meaning as in section 2(1) of the Land Transport Act 1998; but

(b)

otherwise means registered in accordance with this Act

registered forestry right means a forestry right registered under the Forestry Rights Registration Act 1983

registered lease,—

(a)

in relation to a lease in respect of land registered under the Land Transfer Act 2017, means a lease registered under that Act:

(b)

in relation to a lease in respect of land that is not registered under the Land Transfer Act 2017, means a lease registered under the Deeds Registration Act 1908

Registrar means the person appointed under section 11

Registrar of Motor Vehicles has the same meaning as Registrar in section 233(1) of the Land Transport Act 1998

Registry means the Registry established in New Zealand for the purpose set out in section 10

removal activity means an activity that is listed in Part 1 or 2 of Schedule 4

removals,—

(a)

in relation to a removal activity, means carbon dioxide equivalent greenhouse gases that are, as a result of the removal activity,—

(i)

removed from the atmosphere; or

(ii)

not released into the atmosphere; or

(iii)

a reduction from emissions reported in—

(A)

New Zealand’s annual inventory report under section 32 as required under the Convention or Protocol for any year; or

(B)

any emissions report from New Zealand under a successor international agreement; and

(b)

in Part 1B and the definitions of net accounting emissions and offshore mitigation, means greenhouse gases that are removed from the atmosphere

reuse, in relation to dispose, means the further use of waste in its existing form for the original purpose of the materials or products that constitute the waste or for a similar purpose

Secretariat means the Secretariat of the Convention

sink activity, in relation to greenhouse gas removals, means—

(a)

an activity under Article 3.3 of the Protocol; or

(b)

an elected activity under Article 3.4 of the Protocol

solid biofuel means wood, wood waste, sulphate lyes, or charcoal

specified synthetic greenhouse gas means a hydrofluorocarbon or perfluorocarbon specified in regulations made under section 246(1)(a)

surrender means the transfer of a unit to a surrender account in the Registry with the effect specified in section 18CA(2)

surrender account means an account in the Registry for the purpose of holding units that account holders have surrendered

synthetic greenhouse gas means—

(a)

a hydrofluorocarbon; or

(b)

a perfluorocarbon

synthetic greenhouse gas levy or levy means the levy imposed by section 227

the Customs has the same meaning as Customs in section 5(1) of the Customs and Excise Act 2018

tree weed means a tree that is defined or designated as—

(a)

a pest in a pest management strategy under the Biosecurity Act 1993; or

(b)

a tree weed in regulations made under this Act

tree weed spread means the spread of a tree weed by natural regeneration

unincorporated body

(a)

means an unincorporated body of persons; and

(b)

includes (but is not limited to)—

(i)

a partnership, a joint venture, or the trustees of a trust; and

(ii)

if land, a lease, a forestry right, or a Crown conservation contract is not owned, held, or entered into by a partnership, joint venture, or the trustees of a trust, 3 or more joint—

(A)

landowners; or

(B)

leaseholders; or

(C)

holders of a registered forestry right; or

(D)

parties to a Crown conservation contract; but

(c)

does not, unless they are partners, joint venturers, or trustees of a trust, include 2 joint—

(i)

landowners; or

(ii)

leaseholders; or

(iii)

holders of a registered forestry right; or

(iv)

parties to a Crown conservation contract

unit means a New Zealand unit or an approved overseas unit

usual rotation period, in relation to a forest species on land that is the subject of an offsetting forest land application under section 186A, means the usual rotation period prescribed for a forest species in any regulations made under this Act

waste means any thing that has been disposed of or discarded—

(a)

including (but not limited to) any disposed of or discarded thing that is defined by its composition or source (for example, organic waste, electronic waste, or construction and demolition waste); but

(b)

excluding any solid biofuel combusted for the purposes of generating electricity or industrial heat

year means a calendar year ending on 31 December.

(2)

Terms and expressions used and not defined in this Act but defined in the Convention, the Protocol, or the Paris Agreement have, unless the context otherwise requires, the same meaning as in the Convention, the Protocol, or the Paris Agreement.

(3)

A person is an associated person in relation to 1 or more other persons if—

(a)

each person is a body corporate and each of the bodies corporate—

(i)

consist substantially of the same members or shareholders; or

(ii)

are under the control of the same persons; or

(b)

any of the bodies corporate—

(i)

has the power, directly or indirectly, to exercise, or control the exercise of, 25% or more of the voting power at a meeting of the other; or

(ii)

is able to appoint or control 25% or more of the governing body of the other.

(4)

For the purposes of the definition of dispose, a deposit of waste is short-term if, not later than 6 months after the deposit (or any later time that the chief executive has agreed to in writing), the waste is—

(a)

reused or recycled; or

(b)

recovered; or

(c)

removed from the land for any other reason.

(5)

Despite anything in this Act, a hectare of land is not to be treated as pre-1990 forest land if,—

(a)

on 1 January 2008, the land had—

(i)

no standing exotic forest species (dead or alive), other than a strip of standing exotic forest species that had, or was likely to have, tree crown cover of an average width of less than 30 metres; and

(ii)

no other merchantable timber from exotic forest species; and

(b)

4 years after the date on which the land met the conditions in paragraph (a), it is not forest land and no allocation has been made in respect of the land under the pre-1990 forest land allocation plan.

(6)

For the purposes of a provision of this Act that relates to a participant who submits an emissions return that shows nil liability, activity or activities includes any thing that would have been an activity listed in Schedule 3 or 4 if it had been carried out as, or to the extent, described in Schedule 3 or 4 during the period reported on in the emissions return.

(7)

For the purposes of the definition of landowner in relation to the activity listed in Part 1 of Schedule 3, 1 or more pieces of land (land A) and 1 or more pieces of other land (land B) that are owned by the same person are to be treated as if they were owned by different persons if—

(a)

land A and land B are held under different trusts; and

(b)

each trust has the same trustee or trustees; and

(c)

the trustees hold land A and land B in their capacity as professional trustees (as defined in section 183(7)).

Section 4(1) 2050 target: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) account number: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) account number: amended, on 23 June 2020, by section 9(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) agency: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) allocate: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) allocation plan: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) animal material: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) animal product: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) animal welfare export certificate: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) annual financial statements of the Government: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) approved overseas unit: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) assigned amount unit: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) associated person: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) auction: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) Australian eligible industrial activity: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) biogenic methane: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) cancel: substituted, on 26 September 2008, by section 6(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carbon accounting area: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carbon accounting area paragraph (b): amended, on 8 December 2009, by section 8(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) carbon accounting area paragraph (c): added, on 8 December 2009, by section 8(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) carbon dioxide equivalent: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) carbon equivalence: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) carry-over: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) CDM registry: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) certified emission reduction unit: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) chief executive: substituted, on 5 December 2011, by section 4(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) chief executive responsible for the administration of this Act: repealed, on 5 December 2011, by section 4(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) clean development mechanism project: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) clear: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Climate Change Commission and Commission: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) coal: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) commitment period: repealed, on 1 August 2003, by section 5(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) commitment period reserve: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) consolidated group: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) Convention: substituted, on 8 December 2009, by section 8(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) conversion account: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) convert: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) Crown conservation contract: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Crown holding account: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) Crown land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) dairy processing: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) deforest: replaced, on 1 January 2021, by section 211 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) designated operational entity: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) disposal facility: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) dispose: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) document: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) draft allocation plan: repealed, on 8 December 2009, by section 8(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) elect: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) electrical switchgear: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) eligible activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible agricultural activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible industrial activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible land: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) eligible person: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible person paragraph (d): replaced, on 23 June 2020, by section 9(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) emission reduction unit: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) emissions: replaced, on 14 November 2019, by section 6(2) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) emissions budget: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) emissions budget period: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) emissions reduction plan: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) emissions return: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) emissions trading scheme: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) entity: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 4(1) Environmental Protection Authority or EPA: inserted, on 5 December 2011, by section 4(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) ETS participant provisions: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) executive board: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) exempt land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) exempt land paragraph (a)(i): replaced, on 23 June 2020, by section 9(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) exotic forest species: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) expire or expiry: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) export: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) export: amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 4(1) farm dairy: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) financial year: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) first commitment period: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) fishing allocation plan: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) Food Standards Code: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) forest land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) forest land paragraph (a): amended, on 8 December 2009, by section 8(7) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forest land paragraph (c)(i): amended, on 8 December 2009, by section 8(8) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forest land paragraph (c)(ii): amended, on 8 December 2009, by section 8(9) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forest species: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) forest species: amended, on 8 December 2009, by section 8(10) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forestry activity: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) forestry classification: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) fugitive coal seam gas: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) general cancellation account: amended, on 23 June 2020, by section 9(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) goods: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) goods levy: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) greenhouse gas: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) gross emissions: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) group: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 4(1) holding account: amended, on 23 June 2020, by section 9(7) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) holding account: amended, on 1 August 2003, by section 5(1)(c) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) import: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) import: amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 4(1) importer: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) importer: amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 4(1) independent transaction log: repealed, on 26 September 2008, by section 6(12) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) indigenous forest species: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) initial assigned amount: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) international climate change obligations: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) international transaction body: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) international transaction log: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) inventory agency: substituted, on 5 December 2011, by section 4(3) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) issued: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) joint implementation project: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) Kyoto units: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) landowner: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) landowner paragraph (a): amended, on 24 May 2013, by section 65 of the Crown Minerals Amendment Act 2013 (2013 No 14).

Section 4(1) leviable goods: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) leviable motor vehicle: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) levy year: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1): local authority: substituted, on 1 July 2003, by section 262 of the Local Government Act 2002 (2002 No 84).

Section 4(1) long-term certified emission reduction replacement account: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) long-term certified emission reduction unit: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) mandatory emissions return period: inserted, on 23 June 2020, by section 9(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) Maori land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) member: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) merchantable timber: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) mining: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Minister: substituted, on 5 December 2011, by section 4(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Minister responsible for the administration of this Act: repealed, on 5 December 2011, by section 4(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Minister responsible for the inventory agency: repealed, on 26 September 2008, by section 6(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Minister responsible for the Registry: repealed, on 26 September 2008, by section 6(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) motor vehicle: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) motor vehicle levy: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) natural gas: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) net accounting emissions: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) New Zealand Customs Service and the Customs: repealed, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 4(1) New Zealand Greenhouse Gas Inventory: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) New Zealand unit: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) nominated entity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) non-compliance cancellation account: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) obligation fuel: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) obligation jet fuel: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) offsetting forest land: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) offshore mitigation: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) operating: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) overseas registry: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) Paris Agreement: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) participant: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Party: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) post-1989 forest land: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) pre-1990 forest land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) pre-1990 forest land allocation plan: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) pre-1990 offsetting forest land: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) previous commitment period: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) primary representative: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Protocol: substituted, on 8 December 2009, by section 8(12) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) provisional allocation: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) public notice: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) publicly available: inserted, on 14 November 2019, by section 6(1) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) recover: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) recycle: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) registered: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) registered forestry right: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) registered lease: replaced, on 12 November 2018, by section 250 of the Land Transfer Act 2017 (2017 No 30).

Section 4(1) Registrar: inserted, on 5 December 2011, by section 4(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Registrar of Motor Vehicles: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) relevant commitment period: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) removal activity: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) removal unit: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) removals: replaced, on 14 November 2019, by section 6(3) of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Section 4(1) representative identifier: repealed, on 26 September 2008, by section 6(19) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) retire: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) retirement account: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) reuse: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) sink cancellation account: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) solid biofuel: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) specified synthetic greenhouse gas: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) subsequent commitment period: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) supervisory committee: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) surrender: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) surrender: amended, on 23 June 2020, by section 9(8) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) surrender account: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) synthetic greenhouse gas: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) synthetic greenhouse gas levy or levy: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) temporary certified emission reduction replacement account: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) temporary certified emission reduction unit: repealed, on 23 June 2020, by section 9(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) the Customs: inserted, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Section 4(1) tree weed: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) tree weed spread: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) unincorporated body: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) unit: replaced, on 23 June 2020, by section 9(1), (2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(1) usual rotation period: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) waste: substituted, on 8 December 2009, by section 8(13) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) year: added, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(2): amended, on 23 June 2020, by section 9(9) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(3): added, on 26 September 2008, by section 6(24) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(4): added, on 26 September 2008, by section 6(24) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(5): substituted, on 8 December 2009, by section 8(14) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(6): inserted, on 1 January 2013, by section 7(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(6): amended, on 23 June 2020, by section 9(10) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 4(7): inserted, on 1 January 2013, by section 7(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

4AA Greenhouse gas definition may be amended to add gases

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister,—

(a)

amend the definition of greenhouse gas in section 4 to add 1 or more other gases; and

(b)

if necessary, amend Schedule 1AA to set out transitional provisions for the addition.

(2)

The Minister must not recommend the making of an order unless the Minister is satisfied that New Zealand has international climate change obligations in relation to the additional gas or gases.

Section 4AA: inserted, on 23 June 2020, by section 10 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

4A Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms.

Section 4A: inserted, on 14 November 2019, by section 7 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5 Act binds the Crown

This Act binds the Crown.

Part 1A Climate Change Commission

Part 1A: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Subpart 1—Establishment and appointments

Subpart 1: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5A Climate Change Commission established

The Climate Change Commission is established.

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

5B Purposes of Commission

The purposes of the Commission are—

(a)

to provide independent, expert advice to the Government on mitigating climate change (including through reducing emissions of greenhouse gases) and adapting to the effects of climate change; and

(b)

to monitor and review the Government’s progress towards its emissions reduction and adaptation goals.

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

5C Commission is Crown entity

(1)

The Commission is a Crown entity for the purposes of the Crown Entities Act 2004.

(2)

The Crown Entities Act 2004 applies to, and in relation to, the Commission except to the extent that this Act expressly provides otherwise.

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

5D Membership of Commission

(1)

The Commission consists of—

(a)

a Chairperson:

(b)

a Deputy Chairperson:

(c)

no fewer than 3, and no more than 7, other members.

(2)

The members of the Commission are a board for the purposes of the Crown Entities Act 2004.

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

Section 5D(1)(c): replaced, on 23 June 2020, by section 11 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5E Process for appointment of members of Commission

(1)

The Minister may recommend to the Governor-General that a person be appointed a member of the Commission if—

(a)

the person has been nominated by the nominating committee; and

(b)

the Minister has had regard to the matters in section 5H; and

(c)

the Minister has consulted representatives of all political parties in Parliament.

(2)

The Minister may, at any time, recommend to the Governor-General that a current member of the Commission be appointed to the position of Chairperson or Deputy Chairperson of the Commission.

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

5F Establishment and membership of nominating committee

(1)

The Minister must establish a committee to nominate candidates to the Minister for appointment as members of the Commission.

(2)

The nominating committee must comprise—

(a)

the Chairperson of the Commission; and

(b)

4 or more other people who, in the opinion of the Minister, have the relevant skills or experience to identify suitably qualified candidates.

(3)

If the position of Chairperson is vacant, the nominating committee must comprise 5 or more people who, in the opinion of the Minister, have the relevant skills or experience to identify suitably qualified candidates.

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

5G Role of nominating committee

(1)

On request of the Minister, the nominating committee must nominate 1 or more people who, in the opinion of the committee, are suitably qualified to be appointed to be members of the Commission.

(2)

Before nominating a person for appointment, the nominating committee must—

(a)

publicly call for expressions of interest in being appointed; and

(b)

consult any person or group who may have an interest in being a member of the Commission, including—

(i)

iwi and Māori representative organisations; and

(ii)

any person or group that the Minister has identified as having an interest.

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

5H Matters Minister must have regard to before recommending appointment of member of Commission

(1)

Before recommending the appointment of a member of the Commission, the Minister must have regard to the need for the Commission to have members who, collectively, have—

(a)

an understanding of climate change mitigation and adaptation, including the likely effects of any responses to climate change; and

(b)

experience working in or with local and central government; and

(c)

knowledge of the process by which public and regulatory policy is formed and given effect to; and

(d)

technical and professional skills, experience, and expertise in, and an understanding of innovative approaches relevant to,—

(i)

the environmental, ecological, social, economic, and distributional effects of climate change and climate change policy interventions; and

(ii)

the Treaty of Waitangi (Te Tiriti o Waitangi) and te ao Māori (including tikanga Māori, te reo Māori, mātauranga Māori, and Māori economic activity); and

(iii)

a range of sectors and industries, at regional and local levels.

(2)

In this section,—

mātauranga Māori means traditional Māori knowledge

te ao Māori means the Māori world

te reo Māori means the Māori language

tikanga Māori means Māori custom and protocol.

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

5I Members’ term of office

In recommending the appointment of a member of the Commission, the Minister must recommend a term of office that ensures that no more than 2 members have their terms of office expire in any calendar year.

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

Subpart 2—Commission’s functions, duties, and powers

Subpart 2: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5J Commission’s functions

The functions of the Commission are—

(a)

to review the 2050 target and, if necessary, recommend changes to the target (see sections 5R to 5T):

(b)

to provide advice to the Minister to enable the preparation of emissions budgets (see section 5ZA):

(c)

to recommend any necessary amendments to emissions budgets (see section 5ZE):

(d)

to provide advice to the Minister about the quantity of emissions that may be banked or borrowed between 2 adjacent emissions budget periods (see section 5ZF):

(e)

to provide advice to the Minister to enable the preparation of an emissions reduction plan (see section 5ZH):

(f)

to monitor and report on progress towards meeting emissions budgets and the 2050 target (see sections 5ZJ to 5ZL):

(fa)

to make recommendations to the Minister about limits and price control settings for units (see section 5ZOA):

(fb)

to make recommendations to the Minister about decreased or increased phase-out rates (see section 5ZOB):

(g)

to prepare national climate change risk assessments (see section 5ZQ):

(h)

to prepare reports on the implementation of the national adaptation plan (see section 5ZU):

(ha)

to provide advice to the Minister (as required by section 220) on the progress that has been made towards—

(i)

meeting the primary sector climate change commitments set out in Schedule 5; and

(ii)

participants in the activities listed in subpart 4 of Part 5 of Schedule 3 (for animals–farmer participants) being ready to start complying with reporting and surrender obligations under this Act:

(i)

to provide other reports requested by the Minister (see section 5K).

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

Section 5J(fa): inserted, on 23 June 2020, by section 12(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 5J(fb): inserted, on 23 June 2020, by section 12(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 5J(ha): inserted, on 23 June 2020, by section 12(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5K Reports to Government

(1)

The Minister may, at any time, request that the Commission prepare reports to the Government on matters related to reducing emissions of greenhouse gases and adapting to the effects of climate change.

(2)

Before making a request, the Minister must consult the Commission about the terms of reference for the requested report, which may, without limitation, specify—

(a)

the scope of the report; and

(b)

requirements concerning consultation; and

(c)

matters relating to the Commission working jointly with other agencies (including overseas agencies) concerned with the subject matter of the report; and

(d)

the date by which the Commission must submit its report to the Minister.

(3)

On receiving a request from the Minister, the Commission must,—

(a)

as soon as practicable, make the terms of reference publicly available; and

(b)

prepare a report in accordance with the terms of reference; and

(c)

provide the report to the Minister.

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

5L Tabling and publication of Commission’s reports

(1)

This section applies in respect of a document (such as advice, a report, a recommendation, or an assessment) provided to the Minister by the Commission under this Act.

(2)

The Minister must present a copy of the document to the House of Representatives by the later of—

(a)

10 working days after the document is provided to the Minister; and

(b)

if Parliament is not in session during the 10 working days after the document is provided to the Minister, as soon as practicable after the commencement of the next session of Parliament.

(3)

The Commission must make the document publicly available as soon as practicable after it is presented to the House of Representatives, but no later than 20 working days after providing it to the Minister (even if the document has not been presented to the House by that date).

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

5M Matters Commission must consider

In performing its functions and duties and exercising its powers under this Act, the Commission must consider, where relevant,—

(a)

current available scientific knowledge; and

(b)

existing technology and anticipated technological developments, including the costs and benefits of early adoption of these in New Zealand; and

(c)

the likely economic effects; and

(d)

social, cultural, environmental, and ecological circumstances, including differences between sectors and regions; and

(e)

the distribution of benefits, costs, and risks between generations; and

(f)

the Crown-Māori relationship, te ao Māori (as defined in section 5H(2)), and specific effects on iwi and Māori; and

(g)

responses to climate change taken or planned by parties to the Paris Agreement or to the Convention.

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

5N Consultation

(1)

In performing its functions and duties and exercising its powers under this Act, the Commission must—

(a)

proactively engage with persons the Commission considers relevant to the functions, duties, and powers; and

(b)

where the Commission considers it is necessary, provide for participation by the public.

(2)

The Commission may—

(a)

make publicly available, and invite submissions on, discussion papers and draft reports; and

(b)

undertake any other type of consultation that it considers necessary for the performance of its functions and duties under this Act.

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

Section 5N(2)(a): replaced, on 23 June 2020, by section 13 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5O Commission must act independently

(1)

The Commission must act independently in performing its functions and duties and exercising its powers under this Act.

(2)

However, the Minister may direct the Commission to have regard to Government policy for the purposes of the Commission—

(a)

recommending unit supply settings of the New Zealand emissions trading scheme; and

(b)

providing advice about New Zealand’s nationally determined contributions under the Paris Agreement (in a report requested under section 5K).

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

5P Obligation to maintain confidentiality

(1)

The Commission must keep confidential all information that is disclosed to it under section 99(2)(b)(iiib).

(2)

The Commission must not disclose the information, except—

(a)

with the consent of the person to whom the information relates or of the person to whom the information is confidential; or

(b)

to the extent that the information is already in the public domain; or

(c)

for the purposes of, or in connection with, reporting requirements of the Public Finance Act 1989; or

(d)

as provided under this Act or any other Act; or

(e)

in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act.

(3)

A person who knowingly fails to comply with this section commits an offence under section 130.

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

Part 1B Emission reduction

Part 1B: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

Subpart 1—2050 target

Subpart 1: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5Q Target for 2050

(1)

The target for emissions reduction (the 2050 target) requires that—

(a)

net accounting emissions of greenhouse gases in a calendar year, other than biogenic methane, are zero by the calendar year beginning on 1 January 2050 and for each subsequent calendar year; and

(b)

emissions of biogenic methane in a calendar year—

(i)

are 10% less than 2017 emissions by the calendar year beginning on 1 January 2030; and

(ii)

are 24% to 47% less than 2017 emissions by the calendar year beginning on 1 January 2050 and for each subsequent calendar year.

(2)

The 2050 target will be met if emissions reductions meet or exceed those required by the target.

(3)

In this section, 2017 emissions means the emissions of biogenic methane for the calendar year beginning on 1 January 2017.

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

5R Review of inclusion of emissions from international shipping and aviation in 2050 target

The Commission must, no later than 31 December 2024, provide written advice to the Minister on whether the 2050 target should be amended to include emissions from international shipping and aviation (and, if so, how the target should be amended).

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

5S Other 2050 target reviews

(1)

The Commission must review the 2050 target—

(a)

when preparing advice under section 5ZA on setting an emissions budget for an emissions budget period beginning on or after 2036; and

(b)

at any other time the Minister requests a review.

(2)

The Commission must advise the Minister in writing of the outcome of any review, including any recommendations made in accordance with section 5T,—

(a)

at the same time as giving advice to the Minister on setting an emissions budget (in the case of a review required under subsection (1)(a)); or

(b)

as soon as practicable following completion of the review (in the case of a review requested by the Minister).

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

5T Recommendations to amend 2050 target

(1)

As a result of a review under section 5S, the Commission may recommend a change to—

(a)

the time frame for achievement of the 2050 target (or part of the target):

(b)

the levels of emission reductions required by the 2050 target (or part of the target):

(c)

the greenhouse gases, emissions, and removals to which the 2050 target (or part of the target) applies:

(d)

how the 2050 target (or part of the target) may be met, including limits on removals and offshore mitigation.

(2)

The Commission may recommend a change to the 2050 target only if—

(a)

significant change has occurred, or is likely to occur, since the commencement of this section to 1 or more of the following, as they relate to climate change:

(i)

global action:

(ii)

scientific understanding of climate change:

(iii)

New Zealand’s economic or fiscal circumstances:

(iv)

New Zealand’s obligations under relevant international agreements:

(v)

technological developments:

(vi)

distributional impacts:

(vii)

equity implications (including generational equity):

(viii)

the principal risks and uncertainties associated with emissions reductions and removals:

(ix)

social, cultural, environmental, and ecological circumstances; and

(b)

the Commission is satisfied that the significant change justifies the change to the target.

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

5U Government response to target review recommendations

(1)

Within 12 months after receiving a recommendation to amend the 2050 target under section 5R or 5T, the Minister must advise the Commission in writing of the Government’s response.

(2)

The response must include reasons for any departure from the Commission’s recommendation.

(3)

The Minister must make the response publicly available and present a copy to the House of Representatives as soon as practicable, but no later than 10 working days after it has been provided to the Commission.

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

Subpart 2—Setting emissions budgets

Subpart 2: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5V Interpretation

In this subpart and subparts 3 and 4, unless the context otherwise requires,—

advice includes recommendations

banked has the meaning given in section 5ZF(1)

borrowed has the meaning given in section 5ZF(3).

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

5W Purpose of this subpart

The purpose of this subpart and subparts 3 and 4 is to require the Minister to set a series of emissions budgets—

(a)

with a view to meeting the 2050 target and contributing to the global effort under the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels; and

(b)

in a way that allows those budgets to be met domestically; and

(c)

that provides greater predictability for all those affected, including households, businesses, and investors, by giving advance information on the emissions reductions and removals that will be required.

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

5X Duty of Minister to set emissions budgets and ensure they are met

(1)

The Minister must set an emissions budget for each emissions budget period in accordance with this subpart.

(2)

From 31 December 2021, there must be 3 consecutive emissions budgets, 1 current and 2 prospective, in place at any one time.

(3)

An emissions budget must be set and notified in the Gazette under section 5ZD as follows:

(a)

for the emissions budget period 2022 to 2025, by 31 December 2021:

(b)

for the emissions budget period 2026 to 2030, by 31 December 2021:

(c)

for the emissions budget period 2031 to 2035, by 31 December 2021:

(d)

for the emissions budget period 2036 to 2040, by 31 December 2025:

(e)

for the emissions budget period 2041 to 2045, by 31 December 2030:

(f)

for the emissions budget period 2046 to 2050, by 31 December 2035:

(g)

for any subsequent emissions budget period, by 31 December not less than 10 years before that emissions budget period commences.

(4)

The Minister must ensure that the net accounting emissions do not exceed the emissions budget for the relevant emissions budget period.

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

5Y Contents of emissions budgets

(1)

Each emissions budget must state the total emissions that will be permitted for the relevant emissions budget period, expressed as a net quantity of carbon dioxide equivalent.

(2)

Each emissions budget must include all greenhouse gases.

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

5Z How emissions budgets are to be met

(1)

Emissions budgets must be met, as far as possible, through domestic emissions reductions and domestic removals.

(2)

However, offshore mitigation may be used if there has been a significant change of circumstance—

(a)

that affects the considerations on which the relevant emissions budget was based; and

(b)

that affects the ability to meet the relevant emissions budget domestically.

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

Subpart 3—Role of Commission to advise on emissions budgets

Subpart 3: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5ZA Commission to advise Minister

(1)

The Commission must advise the Minister on the following matters relevant to setting an emissions budget:

(a)

the recommended quantity of emissions that will be permitted in each emissions budget period; and

(b)

the rules that will apply to measure progress towards meeting emissions budgets and the 2050 target; and

(c)

how the emissions budgets, and ultimately the 2050 target, may realistically be met, including by pricing and policy methods; and

(d)

the proportions of an emissions budget that will be met by domestic emissions reductions and domestic removals, and the amount by which emissions of each greenhouse gas should be reduced to meet the relevant emissions budget and the 2050 target; and

(e)

the appropriate limit on offshore mitigation that may be used to meet an emissions budget, and an explanation of the circumstances that justify the use of offshore mitigation (see section 5Z).

(2)

In preparing advice for the Minister under subsection (1), the Commission must have regard to the matters set out in section 5ZC.

(3)

Before the Commission provides advice to the Minister on an emissions budget, it must—

(a)

make the proposed advice publicly available and invite comments on that advice; and

(b)

allow adequate time and opportunity for any submissions to be received, heard, and considered by the Commission.

(4)

The Commission must provide its advice to the Minister,—

(a)

in the case of the first 3 emissions budgets, no later than—

(i)

1 February 2021; or

(ii)

after a request by the Commission to extend the deadline, any date on or before 1 August 2021 that is specified by the Minister (whether once or more) by notice in the Gazette:

(b)

in the case of all subsequent emissions budgets, at least 12 months before an emissions budget must be notified under section 5ZD (or at least 15 months before, if a general election is to take place in that year).

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

Section 5ZA(4)(a): replaced, on 23 June 2020, by section 14 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5ZB Minister’s response to Commission

(1)

Before the Minister sets an emissions budget, the Minister must be satisfied that there has been adequate consultation.

(2)

If the Minister is not satisfied that there has been adequate consultation, the Minister must—

(a)

make the proposed emissions budget publicly available; and

(b)

allow adequate time and opportunity for any submissions to be received, heard, and considered by the Minister.

(3)

At the time when the Minister sets and notifies an emissions budget under section 5ZD in accordance with the dates set out in section 5X(3), the Minister must provide a written response that—

(a)

responds to the advice received from the Commission; and

(b)

includes a proposed emissions budget for the relevant emissions budget period; and

(c)

is presented to the House of Representatives and made publicly available.

(4)

If the proposed emissions budget departs from the advice of the Commission, the Minister must—

(a)

decide whether it is necessary to further consult persons likely to have an interest in the emissions budget; and

(b)

explain the reasons for any departures from the Commission’s advice in the response provided under subsection (3).

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

5ZC Matters relevant to advising on, and setting, emissions budgets

(1)

This section applies to—

(a)

the Commission, when it is preparing advice for the Minister under section 5ZA:

(b)

the Minister, when the Minister is determining an emissions budget.

(2)

The Commission and the Minister must—

(a)

have particular regard to how the emissions budget and 2050 target may realistically be met, including consideration of—

(i)

the key opportunities for emissions reductions and removals in New Zealand; and

(ii)

the principal risks and uncertainties associated with emissions reductions and removals; and

(b)

have regard to the following matters:

(i)

the emission and removal of greenhouse gases projected for the emissions budget period:

(ii)

a broad range of domestic and international scientific advice:

(iii)

existing technology and anticipated technological developments, including the costs and benefits of early adoption of these in New Zealand:

(iv)

the need for emissions budgets that are ambitious but likely to be technically and economically achievable:

(v)

the results of public consultation on an emissions budget:

(vi)

the likely impact of actions taken to achieve an emissions budget and the 2050 target, including on the ability to adapt to climate change:

(vii)

the distribution of those impacts across the regions and communities of New Zealand, and from generation to generation:

(viii)

economic circumstances and the likely impact of the Minister’s decision on taxation, public spending, and public borrowing:

(ix)

the implications, or potential implications, of land-use change for communities:

(x)

responses to climate change taken or planned by parties to the Paris Agreement or to the Convention:

(xi)

New Zealand’s relevant obligations under international agreements.

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

5ZD Publication of emissions budgets

(1)

Before an emissions budget is notified in the Gazette and presented to the House of Representatives, the Minister must consult the appropriate representative of each of the political parties represented in the House of Representatives.

(2)

When an emissions budget has been finalised by the Minister in accordance with this subpart, the emissions budget must be—

(a)

notified in the Gazette, stating the date on which the emissions budget period commences and ends; and

(b)

presented by the Minister to the House of Representatives; and

(c)

made publicly available at the direction of the Minister.

(3)

A Gazette notice published under this section is neither a legislative instrument nor a disallowable instrument for the purposes of the Legislation Act 2012, and does not have to be presented to the House of Representatives under section 41 of that Act.

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

Revision of emissions budgets

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

5ZE When emissions budgets may be revised
Notified emissions budgets

(1)

The Commission may, when providing advice and recommendations on a future emissions budget under section 5ZA, recommend that any emissions budgets notified under section 5ZD be revised if, since the emissions budgets were originally set,—

(a)

there have been methodological improvements to the way that emissions are measured and reported; or

(b)

1 or more significant changes have affected the considerations listed in section 5ZC(2) on which an emissions budget was based.

(2)

At any time the 2050 target is revised, the Commission may provide advice recommending that the relevant emissions budgets be revised to reflect the change in the 2050 target.

(3)

An emissions budget notified under section 5ZD may be revised only if the Commission recommends the revision.

Minister’s determination

(4)

After receiving advice from the Commission, the Minister must determine whether to revise an emissions budget.

(5)

The Minister must—

(a)

take into account—

(i)

the Commission’s advice; and

(ii)

the matters set out in section 5ZC(2); and

(b)

follow the procedure set out in sections 5ZB and 5ZD.

(6)

However, the Minister must not revise an emissions budget—

(a)

after an emissions budget period has begun, unless the circumstances are exceptional; or

(b)

after the end of the emissions budget period to which it relates; or

(c)

in any way other than that required if any of the circumstances described in subsection (1) or (2) apply.

(7)

If the Minister determines to revise an emissions budget, the Minister must present to the House of Representatives an explanation of the reasons for revising the original emissions budget, having regard to—

(a)

the matters described in subsection (1)(a) and (b); and

(b)

the prohibition on revising an emissions budget (see subsection (6)) and any exceptional circumstances that led to the Minister’s decision (see subsection (6)(a)).

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

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).

Emissions reduction plan to be prepared

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

5ZG Requirement for emissions reduction plan

(1)

The Minister must prepare and make publicly available a plan setting out the policies and strategies for meeting the next emissions budget, and may include policies and strategies for meeting emissions budgets that have been notified under section 5ZD in accordance with the dates set out in section 5X(3).

(2)

The plan must be prepared and made publicly available by the deadlines specified in section 5ZI.

(3)

The plan must include—

(a)

sector-specific policies to reduce emissions and increase removals; and

(b)

a multi-sector strategy to meet emissions budgets and improve the ability of those sectors to adapt to the effects of climate change; and

(c)

a strategy to mitigate the impacts that reducing emissions and increasing removals will have on employees and employers, regions, iwi and Māori, and wider communities, including the funding for any mitigation action; and

(d)

any other policies or strategies that the Minister considers necessary.

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

Section 5ZG(2): replaced, on 23 June 2020, by section 15 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5ZH Commission to advise on emissions reduction plans

(1)

Not later than 24 months before the beginning of an emissions budget period, the Commission must provide to the Minister advice on the direction of the policy required in the emissions reduction plan for that emissions budget period.

(2)

Despite subsection (1), the first advice must be given no later than—

(a)

1 February 2021; or

(b)

after a request by the Commission to extend the deadline, any date on or before 1 August 2021 that is specified by the Minister (whether once or more) by notice in the Gazette.

(3)

In preparing its advice, the Commission must apply section 5ZC(2) as if it referred to preparing an emissions reduction plan.

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

Section 5ZH(2): replaced, on 23 June 2020, by section 16 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5ZI Minister to prepare and make emissions reduction plan publicly available

(1)

In preparing a plan and supporting policies and strategies for an emissions budget period, the Minister must—

(a)

consider the advice received from the Commission under section 5ZH for meeting emissions budgets; and

(b)

ensure that the consultation has been adequate, including with sector representatives, affected communities, and iwi and Māori, and undertake further consultation as the Minister considers necessary.

(2)

The Minister must—

(a)

prepare the plan after the relevant emissions budget has been notified under section 5ZD; but

(b)

do the following at least 12 months before the commencement of the budget period:

(i)

publish the plan in the Gazette; and

(ii)

make the plan publicly available; and

(iii)

present a copy of the plan to the House of Representatives.

(2A)

However, for the plan for the first emissions budget period, the Minister—

(a)

may prepare the plan before the relevant emissions budget has been notified under section 5ZD; and

(b)

must do the following before the commencement of the budget period:

(i)

publish the plan in the Gazette; and

(ii)

make the plan publicly available; and

(iii)

present a copy of the plan to the House of Representatives.

(3)

The Minister may, at any time, amend the plan and supporting policies and strategies to maintain their currency,—

(a)

using the same process as required for preparing the plan; or

(b)

in the case of a minor or technical change, without repeating the process used for preparing the plan.

(4)

[Repealed]

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

Section 5ZI(2): replaced, on 23 June 2020, by section 17(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 5ZI(2A): inserted, on 23 June 2020, by section 17(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 5ZI(4): repealed, on 23 June 2020, by section 17(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Subpart 4—Monitoring

Subpart 4: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

5ZJ Commission to monitor progress towards meeting emissions budgets

(1)

The Commission must regularly monitor and report on progress towards meeting an emissions budget and the 2050 target in accordance with sections 5ZK and 5ZL (which relate to reporting requirements).

(2)

The Commission must carry out its monitoring function in accordance with the rules referred to in section 5ZA(1)(b) (which relates to measuring progress towards meeting emissions budgets and the 2050 target).

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

5ZK Commission to report annually on results of monitoring

(1)

The Commission must prepare an annual report that includes, for the most recent year of the emissions budget period for which data is available from the New Zealand Greenhouse Gas Inventory,—

(a)

measured emissions; and

(b)

measured removals.

(2)

The report must also include—

(a)

the latest projections for current and future emissions and removals; and

(b)

an assessment of the adequacy of the emissions reduction plan and progress in its implementation, including any new opportunities to reduce emissions.

(3)

Not later than 3 months after the publication of a New Zealand Greenhouse Gas Inventory report, the Commission must provide its annual report prepared under subsection (1) to the Minister.

(4)

Not later than 3 months after receiving the Commission’s annual report under subsection (3), the Minister must present to the House of Representatives and make publicly available a report that—

(a)

sets out the Minister’s response to the Commission’s report and recommendations; and

(b)

describes the progress made in implementing the current emissions reduction plan; and

(c)

notes any amendments to that plan.

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

5ZL Commission to report at end of emissions budget period

(1)

Not later than 2 years after the end of an emissions budget period, the Commission must prepare a report for the Minister evaluating the progress made in that emissions budget period towards meeting the emissions budget for that period, including—

(a)

an evaluation of how well the emissions reduction plan has contributed to that progress; and

(b)

recommendations on any banking and borrowing that would be appropriate; and

(c)

an assessment of the amount of offshore mitigation required to meet the emissions budget for that period, taking into account the limit proposed by the Commission under section 5ZA(1)(e).

(2)

The Minister must present a report to the House of Representatives setting out the Minister’s response to the Commission’s report—

(a)

not later than 3 months after receiving the Commission’s report; or

(b)

if Parliament is not in session, as soon as practicable after the commencement of the next session of Parliament.

(3)

The Minister’s response to the Commission’s report must—

(a)

provide reasons for any failure to meet the relevant emissions budget and for any departures from the Commission’s recommendations; and

(b)

be made publicly available.

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

Section 5ZL(1): amended, on 23 June 2020, by section 18(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 5ZL(1)(c): replaced, on 23 June 2020, by section 18(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Subpart 5—Effect of 2050 target and emissions budgets

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

5ZM Effect of failure to meet 2050 target and emissions budgets

(1)

No remedy or relief is available for failure to meet the 2050 target or an emissions budget, and the 2050 target and emissions budgets are not enforceable in a court of law, except as set out in this section.

(2)

If the 2050 target or an emissions budget is not met, a court may make a declaration to that effect, together with an award of costs.

(3)

If a declaration is made and becomes final after all appeals or rights of appeal expire or are disposed of, the Minister must, as soon as practicable, present to the House of Representatives a document that—

(a)

brings the declaration to the attention of the House of Representatives; and

(b)

contains advice on the Government’s response to the declaration.

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

5ZN 2050 target and emissions budget are permissive considerations

If they think fit, a person or body may, in exercising or performing a public function, power, or duty conferred on that person or body by or under law, take into account—

(a)

the 2050 target; or

(b)

an emissions budget; or

(c)

an emissions reduction plan.

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

5ZO Guidance for departments

(1)

The responsible Minister may issue guidance for departments on how to take the 2050 target or an emissions budget into account in the performance of their functions, powers, and duties (or classes of those functions, powers, and duties).

(2)

The responsible Minister must, as soon as practicable after issuing the guidance, make it publicly available.

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

Subpart 6—Recommendations about making regulations

Subpart 6: inserted, on 23 June 2020, by section 19 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5ZOA Recommendations about limits and price control settings for units

(1)

This section applies after the Minister has set the first emissions budget.

(2)

The Commission must recommend to the Minister limits and price control settings, including any desirable emissions price path, each time the Minister is required to recommend the making of regulations under section 30GB.

(3)

The Commission’s recommendations must—

(a)

cover the limits and price control settings for each year that the Minister’s recommendation must cover; and

(b)

be made in accordance with—

(i)

the same requirements under sections 30GB and 30GC (except section 30GC(5)(e)) that apply to the making of the Minister’s recommendations; and

(ii)

its other duties (see sections 5M to 5O, for example); and

(c)

be given to the Minister a reasonable time before the Minister is required to recommend the making of the regulations.

Section 5ZOA: inserted, on 23 June 2020, by section 19 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

5ZOB Recommendations about decreased or increased phase-out rates

(1)

The Commission must, on the Minister’s request, consider and recommend whether—

(a)

a decreased phase-out rate should be set for 1 or more eligible industrial activities for a year or years (by the making or amendment of regulations under section 84A):

(b)

an increased phase-out rate should be set for 1 or more eligible industrial activities for an emissions budget period (by the making or amendment of regulations under section 84B).

(2)

The Commission must recommend that a decreased phase-out rate should be set for 1 or more eligible industrial activities if the Commission is satisfied that there is an ongoing and substantial risk that activities will be relocated outside of New Zealand to reduce emissions-related costs.

(3)

The Commission may recommend that an increased phase-out rate should be set for 1 or more eligible industrial activities if the Commission is satisfied that it is appropriate to do so, having regard to the matters listed in section 84C(3).

Section 5ZOB: inserted, on 23 June 2020, by section 19 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Part 1C Adaptation

Part 1C: inserted, on 14 November 2019, by section 8 of the Climate Change Response (Zero Carbon) Amendment Act 2019 (2019 No 61).

National climate change risk assessment

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

5ZP National climate change risk assessment

(1)

A national climate change risk assessment must—

(a)

assess the risks to New Zealand’s economy, society, environment, and ecology from the current and future effects of climate change; and

(b)

identify the most significant risks to New Zealand, based on the nature of the risks, their severity, and the need for co-ordinated steps to respond to those risks in the next 6-year period.

(2)

Sections 5L and 5ZQ apply to all national climate change risk assessments except the first one.

(3)

Section 5ZR applies to the first national climate change risk assessment.

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

5ZQ Preparation of national climate change risk assessment

(1)

The Commission must, no later than 6 years after the date on which the most recent national climate change risk assessment was made publicly available,—

(a)

provide the next national climate change risk assessment to the Minister; and

(b)

make that assessment publicly available.

(2)

At the same time as making a national climate change risk assessment publicly available (in compliance with subsection (1)(b) and section 5L(3)), the Commission must make any evidence commissioned to support its preparation publicly available.

(3)

In preparing a national climate change risk assessment, the Commission must take into account the following:

(a)

economic, social, health, environmental, ecological, and cultural effects of climate change:

(b)

the distribution of the effects of climate change across society, taking particular account of vulnerable groups or sectors:

(c)

New Zealand’s relevant obligations under international agreements:

(d)

how the assessment aligns or links with any other relevant national risk assessments produced by central government entities:

(e)

current effects and likely future effects of climate change:

(f)

any information received as a result of requests made under section 5ZW:

(g)

scientific and technical advice.

(4)

The Commission may also take into account—

(a)

opportunities arising for New Zealand’s economy, society, and environment as a result of the effects of climate change; and

(b)

any other factor that it thinks is relevant or appropriate.

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

5ZR Minister must prepare first national climate change risk assessment

(1)

The Minister must, no later than 1 year after the commencement of this Part,—

(a)

prepare the first national climate change risk assessment; and

(b)

present the assessment to the House of Representatives; and

(c)

make the assessment and any evidence commissioned to support its preparation publicly available.

(2)

Section 5ZQ(3) and (4) applies with the necessary modifications for the purposes of this section.

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

National adaptation plan

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

5ZS National adaptation plan

(1)

In response to each national climate change risk assessment, the Minister must prepare a national adaptation plan.

(2)

A national adaptation plan must set out—

(a)

the Government’s objectives for adapting to the effects of climate change; and

(b)

the Government’s strategies, policies, and proposals for meeting those objectives; and

(c)

the time frames for implementing the strategies, policies, and proposals; and

(d)

how the matters in paragraphs (a) to (c) address the most significant risks identified in the most recent national climate change risk assessment; and

(e)

the measures and indicators that will enable regular monitoring of and reporting on the implementation of the strategies, policies, and proposals.

(3)

A national adaptation plan may include any other matter that the Minister considers relevant.

(4)

In preparing a national adaptation plan, the Minister must take into account the following:

(a)

economic, social, health, environmental, ecological, and cultural effects of climate change, including effects on iwi and Māori:

(b)

the distribution of the effects of climate change across society, taking particular account of vulnerable groups or sectors:

(c)

New Zealand’s relevant obligations under international agreements:

(d)

any information received as a result of requests made under section 5ZW:

(e)

any relevant advice or reports received from the Commission:

(f)

the ability of communities or organisations to undertake adaptation action, including how any action may be funded:

(g)

scientific and technical advice.

(5)

The Minister may also take into account any other matter that the Minister thinks is relevant or appropriate.

(6)

In preparing a national adaptation plan, the Minister must undertake public consultation on the draft plan.

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

5ZT National adaptation plan must be presented to Parliament and made publicly available

(1)

The Minister must, no later than 2 years after the date on which the most recent national climate change risk assessment is made publicly available,—

(a)

present the national adaptation plan to the House of Representatives; and

(b)

make the national adaptation plan publicly available.

(2)

The Minister may make minor or technical changes to a national adaptation plan and must make any new version publicly available (but need not present the new version to the House of Representatives).

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

Progress reports

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

5ZU Progress reports on national adaptation plan

(1)

For each national adaptation plan, the Commission must provide the Minister with a progress report that evaluates the implementation of the adaptation plan and its effectiveness—

(a)

2 years after the adaptation plan is made publicly available; and

(b)

4 years after the adaptation plan is made publicly available; and

(c)

6 years after the adaptation plan is made publicly available.

(2)

Each progress report must include—

(a)

an assessment of the progress made towards implementing the strategies, policies, and proposals included in the plan; and

(b)

an assessment of the degree to which the objectives of the plan have been achieved and how well the plan responds to the most significant risks posed by climate change; and

(c)

an identification of any known barriers to the implementation and effectiveness of the current plan, including recommendations for how those barriers might be addressed or overcome in future; and

(d)

any other relevant matters required to support the report.

(3)

The Commission is not required to provide the Minister with a progress report if the date for providing the report to the Minister under subsection (1) is more than 1 year after the date on which a subsequent adaptation plan is made publicly available.

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

5ZV Minister must respond to progress report

The Minister must, no later than 6 months after the date on which the Minister receives a progress report,—

(a)

respond in writing to the progress report; and

(b)

make the response publicly available and present it to the House of Representatives.

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

Power to request provision of information

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

5ZW Minister or Commission may request certain organisations to provide information on climate change adaptation

(1)

The Minister or the Commission may, in writing, request that a reporting organisation provide all or any of the following information:

(a)

a description of the organisation’s governance in relation to the risks of, and opportunities arising from, climate change:

(b)

a description of the actual and potential effects of the risks and opportunities on the organisation’s business, strategy, and financial planning:

(c)

a description of the processes that the organisation uses to identify, assess, and manage the risks:

(d)

a description of the metrics and targets used to assess and manage the risks and opportunities, including, if relevant, time frames and progress:

(e)

any matters specified in regulations.

(2)

The reporting organisation must comply with a request made under subsection (1).

(3)

The Minister must, as soon as practicable, provide the Commission with a copy of any information received in response to a request made by the Minister.

(4)

The Commission must, as soon as practicable, provide the Minister with a copy of any information received in response to a request made by the Commission.

(5)

The Minister and the Commission must not publicly disclose any information received in response to a request, unless disclosure of the information is necessary to enable the Minister or the Commission to perform a function or duty imposed by this Part.

(6)

Subsection (5) does not apply in respect of information that is already in the public domain.

(7)

Before publicly disclosing any information received in response to a request, the Minister or Commission must consult with the person to whom the information relates.

(8)

For the purposes of this section and section 5ZX, the following are reporting organisations:

(a)

the public service, as defined in section 10 of the Public Service Act 2020:

(b)

local authorities, as defined in section 5(1) of the Local Government Act 2002:

(c)

council-controlled organisations, as defined in section 6(1) of the Local Government Act 2002:

(d)

Crown entities, as defined in section 7(1) of the Crown Entities Act 2004, but excluding school boards:

(e)

companies listed in Schedule 4A of the Public Finance Act 1989:

(f)

organisations listed in Schedule 1 of the State-Owned Enterprises Act 1986:

(g)

lifeline utilities listed in Schedule 1 of the Civil Defence Emergency Management Act 2002:

(h)

the New Zealand Police:

(i)

the New Zealand Defence Force.

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

Section 5ZW(8)(a): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).

Section 5ZW(8)(d): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

5ZX Regulations relating to requiring provision of information

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations specifying all or any of the following:

(a)

requirements that relate to information that is provided in response to a request under section 5ZW(1), including different requirements for different sectors, classes of activity, or geographical areas:

(b)

a date by which or time within which requested information must be provided to the Minister:

(c)

ongoing or recurring reporting requirements (for example, requiring the provision of further information at regular intervals following a request):

(d)

any administrative matters relating to responses to requests.

(2)

In preparing the regulations, the Minister must consider—

(a)

the ability to tailor a request to reflect the size and capability of the reporting organisation; and

(b)

the potential extent and significance of climate change effects on the functions of the reporting organisation; and

(c)

the avoidance of unnecessary duplication of information provided within existing reporting frameworks.

(3)

Before recommending the making of the regulations, the Minister must consult the Commission and the reporting organisations that the Minister considers may be affected by the proposed regulations.

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

Part 2 Institutional arrangements

Subpart 1Ministerial powers

Subpart 1 heading: replaced, on 1 January 2013, by section 8 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

6 Minister of Finance may direct Registrar regarding establishment of Crown holding accounts and carry out trading activities with respect to units

The Minister of Finance may, on behalf of the Crown,—

(a)

direct the Registrar to establish or close Crown holding accounts:

(b)

direct the Registrar to transfer units to any holding account in the Registry or to an overseas registry or international transaction body:

(c)

buy or sell units, or otherwise acquire or dispose of units:

(d)

enter into agreements to buy or sell units, or otherwise acquire or dispose of units:

(e)

buy or sell, or enter into any agreement to buy or sell, or otherwise acquire or dispose of, any financial derivatives or other financial instruments relating to units or in connection with transactions relating to units:

(f)

appoint agents to conduct the activities referred to in paragraphs (a) to (e) on the terms and conditions that the Minister of Finance thinks fit.

Section 6 heading: amended, on 8 December 2009, by section 9(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 6(a): amended, on 8 December 2009, by section 9(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 6(b): amended, on 23 June 2020, by section 20(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 6(d): amended, on 23 June 2020, by section 20(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

6A Minister’s power to sell by auction

If regulations are made under section 30GA, the Minister may, on behalf of the Crown,—

(a)

sell New Zealand units by auction within a prescribed individual limit and overall limit:

(b)

appoint agents to conduct the sale on the terms and conditions that the Minister thinks fit:

(c)

direct the Registrar to transfer units to any holding account in the Registry for the purposes of selling New Zealand units by auction.

Section 6A: inserted, on 1 January 2013, by section 9 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 6A: amended, on 23 June 2020, by section 21(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 6A(a): amended, on 23 June 2020, by section 21(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 6A(c): inserted, on 23 June 2020, by section 21(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

7 Minister of Finance may give directions to Registrar regarding accounts and units

(1)

The Minister of Finance may give directions to the Registrar to—

(a)

establish the following accounts in the Registry for the Crown:

(i)
[Repealed]

(ii)
[Repealed]

(iii)

a general cancellation account:

(iv)
[Repealed]

(v)
[Repealed]

(vi)
[Repealed]

(vii)

a surrender account:

(viii)
[Repealed]

(b)

transfer units between holding accounts, subject to any prescribed restriction or prohibition.

(c)
[Repealed]

(d)
[Repealed]

(da)
[Repealed]

(db)
[Repealed]

(e)
[Repealed]

(2)

Despite subsection (1), or any regulations made under this Act, the Minister of Finance may not give a direction to transfer units from an account held by an account holder other than the Crown to another account in the Registry, unless—

(a)

the Minister of Finance has the written consent of the account holder; or

(b)

if written consent is not given, the Minister of Finance gives the account holder reasonable notice and—

(i)

the transfer is required to comply with international climate change obligations; or

(ii)

the account holder has failed to comply with Part 2 or any regulations made under section 30G; or

(c)

(3)

[Repealed]

Section 7(1)(a)(i): repealed, on 23 June 2020, by section 22(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(a)(ii): repealed, on 23 June 2020, by section 22(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(a)(iv): repealed, on 23 June 2020, by section 22(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(a)(v): repealed, on 23 June 2020, by section 22(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(a)(vi): repealed, on 23 June 2020, by section 22(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(a)(vii): added, on 26 September 2008, by section 7(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85)

Section 7(1)(a)(viii): repealed, on 23 June 2020, by section 22(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(b): replaced, on 23 June 2020, by section 22(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(c): repealed, on 23 June 2020, by section 22(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(d): repealed, on 23 June 2020, by section 22(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(da): repealed, on 23 June 2020, by section 22(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(db): repealed, on 23 June 2020, by section 22(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(1)(e): repealed, on 23 June 2020, by section 22(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(2): added, on 19 November 2007, by section 6(5) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(2)(b): substituted, on 26 September 2008, by section 7(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(2)(b)(i): replaced, on 23 June 2020, by section 22(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 7(2)(c): added, on 26 September 2008, by section 7(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(3): repealed, on 23 June 2020, by section 22(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

8 Registrar must give effect to directions of Minister of Finance

(1)

The Registrar must give effect to any directions given by the Minister of Finance under section 6 or section 7 in accordance with, and subject to, the procedures set out in subpart 2 of this Part and regulations made under section 30G.

(2)

To avoid doubt, the Crown Entities Act 2004 does not apply to a direction by the Minister of Finance to the Registrar.

Section 8(1): amended, on 26 September 2008, by section 8 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 8(2): added, on 5 December 2011, by section 5 of the Climate Change Response Amendment Act 2011 (2011 No 15).

8A Minister of Finance must publish directions

As soon as practicable after giving a direction under section 6 or 7, the Minister of Finance must publish a copy of the direction on the Registry’s Internet site.

Section 8A: inserted, on 19 November 2007, by section 7 of the Climate Change Response Amendment Act 2006 (2006 No 59).

9 Minister of Finance may obtain information from inventory agency and Registrar

For the purposes of managing the Crown’s holding of units and discharging New Zealand’s obligations under section 32(1)(b), the Minister of Finance may, as and when he or she thinks fit,—

(a)

direct the inventory agency to provide information estimating New Zealand’s human-induced emissions of greenhouse gases by sources and removals by sink activities:

(b)

direct the Registrar to provide information on those units, including, but not limited to, information indicating—

(i)

how many units the Crown holds; and

(ii)

how many units the Crown has issued or acquired, transferred, replaced, and cancelled.

Section 9: amended, on 19 November 2007, by section 8(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 9(b)(ii): amended, on 23 June 2020, by section 23 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 9(b)(ii): amended, on 19 November 2007, by section 8(2)(a) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Subpart 1A—Chief executive

Subpart 1A: inserted, on 5 December 2011, by section 6 of the Climate Change Response Amendment Act 2011 (2011 No 15).

9A Functions of chief executive

The functions of the chief executive are to—

(a)

advise the Minister; and

(b)

be the inventory agency; and

(c)

publish information on the Internet in accordance with this Act.

Section 9A: inserted, on 5 December 2011, by section 6 of the Climate Change Response Amendment Act 2011 (2011 No 15).

9B Delegation by chief executive

(1)

The chief executive may delegate any of his or her functions, duties, and powers under this Act to the EPA.

(2)

Clauses 2 and 3 of Schedule 6 of the Public Service Act 2020 applies to a delegation under this section as if the EPA were an employee of the chief executive.

Section 9B: inserted, on 5 December 2011, by section 6 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 9B(2): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).

Subpart 2—Registry

Purpose of Registry

10 Purpose of Registry

The purpose of the Registry is—

(a)

to ensure the accurate, transparent, and efficient accounting of—

(i)

the issue, holding, transfer, surrender, and cancellation of New Zealand units and approved overseas units; and

(ii)

the conversion of New Zealand units in accordance with regulations made under this Act; and

(b)

to ensure the accurate, transparent, and efficient exchange of information between the Registry, overseas registries, and international transaction bodies; and

(c)

to facilitate the exchange of information between the persons with functions, duties, and powers under this Act to enable all of them to perform their functions and duties and exercise their powers.

Section 10: replaced, on 23 June 2020, by section 24 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Registrar

11 EPA to appoint Registrar

The EPA must appoint an employee of the EPA as the Registrar.

Section 11: substituted, on 5 December 2011, by section 7 of the Climate Change Response Amendment Act 2011 (2011 No 15).

12 Registrar responsible for Registry

The Registrar is responsible for the operation, on behalf of the Crown, of the Registry.

Section 12: amended, on 5 December 2011, by section 8 of the Climate Change Response Amendment Act 2011 (2011 No 15).

13 Registrar may refuse access to, or suspend operation of, Registry

The Registrar may refuse access to the Registry, or otherwise suspend the operation of the Registry (in whole or in part),—

(a)

for maintenance; or

(b)

in response to technical difficulties; or

(c)

to ensure the security or integrity of the Registry; or

(d)

to give effect to international climate change obligations.

Section 13: substituted, on 19 November 2007, by section 10 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 13(d): amended, on 23 June 2020, by section 25 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

14 Registrar must give effect to directions

The Registrar must give effect to any direction (including for the transfer of units) that is given by a Minister or the EPA in accordance with this Act.

Section 14: replaced, on 23 June 2020, by section 26 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

15 Registrar to allocate unique numbers

(1)

The Registrar must, in accordance with regulations made under this Act, allocate a unique account number to each account when the account is created.

(1A)

The Registrar may, subject to regulations made under this Part, allocate a unique serial number to—

(i)

a New Zealand unit; or

(ii)

an approved overseas unit; or

(iii)

a class or subclass of New Zealand units; or

(iv)

a class or subclass of approved overseas units.

(2)

[Repealed]

Section 15 heading: amended, on 26 September 2008, by section 13(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 15(1): replaced, on 23 June 2020, by section 27(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 15(1A): inserted, on 26 September 2008, by section 13(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 15(2): repealed, on 23 June 2020, by section 27(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

16 Carry-over of certain Kyoto units
[Repealed]

Section 16: repealed, on 23 June 2020, by section 28 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

17 Commitment period reserve
[Repealed]

Section 17: repealed, on 23 June 2020, by section 28 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

17A Power of Registrar to delegate

(1)

The Registrar may, in writing, delegate to any person who is employed by the EPA or in the State services all or any of the functions, duties, and powers exercisable by the Registrar under this Act, except this power of delegation.

(2)

Subject to any general or special directions given or conditions specified at any time by the Registrar, the person to whom any functions, duties, or powers are delegated under this section must perform and may exercise those functions, duties, and powers in the same manner and with the same effect as if they had been conferred on that person directly by a section of this Act and not by delegation.

(3)

Every person purporting to act under any delegation under this section is, in the absence of proof to the contrary, presumed to be acting in accordance with the terms of the delegation.

(4)

Any delegation under this section may be to a specified person or to persons of a specified class, or may be to the holder or holders for the time being of a specified office or specified classes of offices.

(5)

Every delegation under this section is revocable in writing at will by the Registrar, and no such delegation prevents the exercise of any function, duty, or power by the Registrar.

(6)

Every delegation under this section, until revoked, continues in force according to its tenor, even if the Registrar by whom it was made has ceased to hold office.

(7)

For the purposes of this section, State services has the same meaning as in section 5 of the Public Service Act 2020.

Section 17A: inserted, on 8 December 2009, by section 11 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 17A(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 17A(7): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).

Unit register

18 Form and content of unit register

(1)

The Registry must have a unit register that is—

(a)

in electronic form; and

(b)

accessible via the Registry’s Internet site; and

(c)

operated at all times, unless the Registrar suspends its operation (in whole or in part) under section 13 or as prescribed in regulations.

(2)

The unit register must contain—

(a)

a record of the holdings of units in holding accounts in New Zealand; and

(b)

the particulars of transactions, including, but not limited to, the issue, transfer, replacement, surrender, conversion, and cancellation of units; and

(c)

any other matters that are required to be registered under this Act or regulations made under this Act.

(3)

A unit recorded in the unit register is—

(a)

indivisible with respect to the issue, holding, transfer, replacement, surrender, cancellation, and conversion of a unit within the unit register; and

(b)

transferable, subject to any regulations made under this Act,—

(i)

within the unit register; or

(ii)

between the unit register and overseas registries or international transaction bodies.

Section 18(1)(b): amended, on 19 November 2007, by section 13(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18(2)(b): replaced, on 23 June 2020, by section 29(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 18(3): added, on 19 November 2007, by section 13(4) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18(3)(a): substituted, on 26 September 2008, by section 16(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18(3)(a): amended, on 23 June 2020, by section 29(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 18(3)(b)(ii): amended, on 23 June 2020, by section 29(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18A Opening holding accounts

(1)

Any person may submit an application to the Registrar to open 1 or more holding accounts in the unit register by using the form and paying the fees (if any) prescribed in regulations made under this Act.

(2)

The Registrar may approve the opening of a holding account subject to any regulations made under this Act.

(3)

If the Registrar approves an application to open a holding account, the Registrar must, as soon as practicable,—

(a)

open a holding account in the applicant’s name; and

(b)

provide the applicant with an account number.

(4)

If the application is incomplete, the Registrar must, as soon as practicable, ask the applicant to provide the information or fee (if any) that is required to make the application complete.

(5)

The Registrar may refuse to provide a holding account to any applicant who provides an incomplete application.

(6)

A holding account is subject to any regulations made under this Act.

Section 18A: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18A(3)(b): amended, on 26 September 2008, by section 17 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

18B Closing holding accounts

(1)

An account holder may submit a request to the Registrar to close 1 or more of that account holder’s holding accounts in the unit register by using the form and paying the fee (if any) prescribed in regulations made under this Act.

(2)

The EPA may give a direction to the Registrar to close an account holder’s holding account—

(a)

if the EPA has the written consent of the account holder; or

(b)

where written consent is not given,—

(i)

if the EPA has given the account holder reasonable notice; and

(ii)

if—

(A)
[Repealed]

(B)

the account holder has failed to comply with this Part or any regulations made regarding the matters specified in section 30G; or

(C)

the EPA is satisfied that the account holder no longer requires the account.

(3)

If there are any units remaining in a holding account when it is closed,—

(a)

the units are forfeited to the Crown; and

(b)

the Registrar must, as soon as practicable, transfer the units to a Crown holding account.

(4)

If a request is incomplete, the Registrar must, as soon as practicable, ask the account holder to provide the information or fee (if any) that is required to make the request complete.

(5)

The Registrar may not close a holding account if the account holder provides an incomplete request.

(6)

For the purposes of subsection (2)(b)(i), reasonable notice means sufficient opportunity in the circumstances to—

(a)

transfer the units to another account before the holding account that is the subject of the closure direction is closed; or

(b)

in the case of non-compliance, comply with this Part or any regulations made under section 30G; or

(c)

if the EPA is satisfied that an account holder no longer requires a holding account, make a written submission to the EPA, before the account is closed, regarding the account holder’s need to retain the account.

(7)

The Registrar must give effect to any directions given by the EPA under subsection (2) in accordance with, and subject to, the procedures set out in this subpart and any regulations made under section 30G.

Section 18B: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18B(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(2)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(2)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(2)(b)(ii)(A): repealed, on 23 June 2020, by section 30 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 18B(2)(b)(ii)(B): amended, on 26 September 2008, by section 18(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18B(2)(b)(ii)(B): amended, on 26 September 2008, by section 18(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18B(2)(b)(ii)(C): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(6): substituted, on 26 September 2008, by section 18(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18B(6)(c): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(7): added, on 8 December 2009, by section 12 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 18B(7): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

18C Transfer of units

(1)

An account holder may, by using the form and paying the fees (if any) prescribed in regulations made under this Act, apply to the Registrar to transfer units from that account holder’s holding account to another account in—

(a)

the unit register; or

(b)

an overseas registry or international transaction body.

(2)

The Registrar must transfer the specified units as requested, subject to any regulations made under this Act.

(3)

[Repealed]

(4)

An account holder who receives units is under no obligation to initiate any registration process.

Section 18C: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18C(1)(b): amended, on 23 June 2020, by section 31(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 18C(3): repealed, on 23 June 2020, by section 31(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18CA Effect of surrender and cancellation

(1)

A unit that is transferred to a cancellation account may not be further transferred, surrendered, or cancelled.

(2)

A unit that is transferred to a surrender account may only be further transferred in accordance with a direction of the Minister of Finance given under section 6 or 7 or a direction of the EPA given under section 124.

Section 18CA: replaced, on 23 June 2020, by section 32 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18CB Restriction on surrender of assigned amount units
[Repealed]

Section 18CB: repealed, on 23 June 2020, by section 33 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18CC Restriction on surrender of assigned amount units issued during first commitment period
[Repealed]

Section 18CC: repealed, on 23 June 2020, by section 33 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18CD Effect of surrendering restricted assigned amount units
[Repealed]

Section 18CD: repealed, on 23 June 2020, by section 33 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18D Succession

(1)

This section applies if an account holder—

(a)

is a natural person and dies; or

(b)

is not a natural person and is wound up, liquidated, dissolved, or otherwise ceases to exist.

(2)

If this section applies, the person listed on the holding account as the account holder’s representative may operate the holding account until—

(a)

a successor is determined; and

(b)

the Registrar has registered the successor as the account holder.

(3)

The Registrar may register a successor as the account holder—

(a)

on application made in the form, and payment of the fee (if any), prescribed in regulations made under this Act; and

(b)

in accordance with those regulations.

(4)

However, if the account holder is a company and any units in its holding account are vested in the Crown under section 324(1) of the Companies Act 1993,—

(a)

subsections (2) and (3) do not apply; and

(b)

the EPA must, as soon as practicable after becoming aware of the public notice about the vesting of the units that is given under section 324(3) of that Act, direct the Registrar to transfer the units to a Crown holding account and close the account holder’s holding account.

Section 18D: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18D(2)(b): replaced, on 23 June 2020, by section 34(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 18D(3): replaced, on 23 June 2020, by section 34(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 18D(4): inserted, on 23 June 2020, by section 34(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

18E Trusts, representatives, and assignees of bankrupts

(1)

Notice of a trust, whether express, implied, or constructive, may not be entered on the unit register except in accordance with subsection (1A).

(1A)

If the trustees of a trust apply to open a holding account under section 18A, then—

(a)

the trustees may specify the name of the trust as the name of the holding account; and

(b)

the Registrar may enter on the unit register the name of the trust as the name of the holding account.

(2)

Despite anything in section 18D, the existence of a representative that may operate the holding account of an account holder who has died, or that has been wound up, liquidated, or dissolved, or otherwise has ceased to exist, does not constitute notice of a trust.

(3)

The assignee of the property of a bankrupt may be entered on the unit register as the assignee of the bankrupt’s units.

Section 18E: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18E(1): substituted, on 8 December 2009, by section 14 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 18E(1A): inserted, on 8 December 2009, by section 14 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

19 Retirement of Kyoto units by the Crown
[Repealed]

Section 19: repealed, on 23 June 2020, by section 35 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

20 Transactions must be registered

(1)

A transaction to issue, transfer, cancel, surrender, convert, or replace units must be registered on the unit register.

(2)

However, the Registrar may not register a transaction on the unit register if—

(a)

the Registrar receives a notification from an international transaction body that there is a discrepancy with the transaction; or

(b)

the transaction is not submitted in the prescribed form; or

(c)

the prescribed fees (if any) have not been paid to the Registrar (unless arrangements for payment have been made in accordance with regulations made under this Act).

Section 20(1): amended, on 23 June 2020, by section 36(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 20(1): amended, on 26 September 2008, by section 22(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 20(1): amended, on 19 November 2007, by section 15(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 20(2): substituted, on 19 November 2007, by section 15(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 20(2)(a): amended, on 23 June 2020, by section 36(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

21 Registration procedure for Kyoto units
[Repealed]

Section 21: repealed, on 23 June 2020, by section 37 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

21AA Registration procedure for New Zealand units and approved overseas units

(1)

On receipt of a direction in relation to New Zealand units or approved overseas units given by the EPA or a Minister authorised to give the direction under this Act, or an application for the registration of a transaction in relation to New Zealand units or approved overseas units by an account holder, which is completed to the satisfaction of the Registrar and in accordance with any regulations made under this Act, the Registrar must—

(a)

create a unique transaction number; and

(b)

if the proposed transaction concerns an overseas registry or international transaction body, send a record of the proposed transaction to the overseas registry or international transaction body if required by it; and

(c)

if the proposed transaction does not concern an overseas registry or international transaction body,—

(i)

record in the unit register the particulars of the transaction set out in the direction or the application; and

(ii)

send electronic notification that the transaction has been recorded in the unit register to,—

(A)

in the case of a direction, the EPA or the Minister who gave the direction and, if the direction specifies that New Zealand units or approved overseas units are to be transferred to the holding account of an account holder other than the Crown, the account holder:

(B)

in the case of an application, the account holder who submitted the application and the account holder specified in the application as the account holder to whose holding account New Zealand units or approved overseas units are to be transferred.

(2)

If the Registrar sends a record of the proposed transaction to an overseas registry or international transaction body under subsection (1)(b) and receives notification back from it that there are no discrepancies in the transaction, the Registrar must, as soon as practicable,—

(a)

record in the unit register the particulars of the transaction set out in the direction or the application; and

(b)

send notification to the overseas registry or international transaction body that the transaction has been recorded in the unit register; and

(c)

send electronic notification that the transaction has been recorded in the unit register to,—

(i)

in the case of a direction, the EPA or the Minister who gave the direction; or

(ii)

in the case of an application, the account holder.

(3)

If the Registrar receives a notification from the overseas registry or international transaction body that there is a discrepancy in a proposed transaction in relation to New Zealand units or approved overseas units, the Registrar—

(a)

may not register the transaction; and

(b)

must terminate the transaction; and

(c)

must notify the overseas registry or international transaction body of the termination; and

(d)

send electronic notification that the transaction has been terminated to,—

(i)

in the case of a direction, the Minister or the EPA who gave the direction; or

(ii)

in the case of an application, the account holder.

Section 21AA: inserted, on 26 September 2008, by section 24 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21AA(1): amended, on 23 June 2020, by section 38(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21AA(1)(b): replaced, on 23 June 2020, by section 38(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(1)(c): amended, on 23 June 2020, by section 38(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(1)(c)(ii)(A): amended, on 23 June 2020, by section 38(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(1)(c)(ii)(A): amended, on 8 December 2009, by section 16(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21AA(2): amended, on 23 June 2020, by section 38(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(2): amended, on 23 June 2020, by section 38(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(2)(b): amended, on 23 June 2020, by section 38(7) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(2)(c)(i): amended, on 23 June 2020, by section 38(8) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(3): amended, on 23 June 2020, by section 38(9) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(3)(c): amended, on 23 June 2020, by section 38(10) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21AA(3)(d)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21AA(3)(d)(i): amended, on 8 December 2009, by section 16(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

21A Electronic registration

A direction to the Registrar by the Minister or the EPA under this Act or an application by an account holder to register a transaction must be—

(a)

made electronically in the prescribed form via the Registry’s Internet site, and contain the particulars specified in the form; and

(b)

accompanied by the fee (if any) prescribed in regulations made under this Act; and

(c)

made in accordance with regulations made under this Act.

Section 21A: inserted, on 19 November 2007, by section 17 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 21A: amended, on 23 June 2020, by section 39 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 21A: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21A: amended, on 8 December 2009, by section 17 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

21B Defective applications

(1)

If an application is defective, the Registrar may direct the applicant, in writing by electronic notification, to correct the defect within a specified period of time.

(2)

If a direction to correct a defect is not complied with within the specified period of time, the Registrar may refuse to—

(a)

proceed with the registration; or

(b)

register the transaction.

(3)

Any fees paid to the Registrar in relation to an uncorrected defective application are forfeited.

Section 21B: inserted, on 19 November 2007, by section 17 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 21B(1): replaced, on 23 June 2020, by section 40 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

22 Transactions take effect when registered

(1)

A transaction takes effect when it is registered.

(2)

A transaction is registered when the Registrar—

(a)

assigns a registration number, date, and time, and other information that may be required by this Act, to the transaction; and

(b)

enters those particulars in the unit register.

23 Receiving Kyoto units from overseas registries
[Repealed]

Section 23: repealed, on 23 June 2020, by section 41 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

23A Receiving New Zealand units and approved overseas units from overseas registries or international transaction bodies

(1)

If the Registrar receives notification from an overseas registry or international transaction body of a proposal to transfer New Zealand units or approved overseas units to an account in the Registry and the Registrar is satisfied that there is no discrepancy with the transaction, the Registrar must register the transaction in accordance with the notification.

(2)

If the Registrar receives notification from an overseas registry or international transaction body of a proposal to transfer New Zealand units or approved overseas units to an account in the Registry and the Registrar is satisfied that there is a discrepancy with the transaction, the Registrar—

(a)

may not register the transaction; and

(b)

must terminate the transaction; and

(c)

must notify the overseas registry or international transaction body of the termination.

(3)

A transfer of New Zealand units or approved overseas units from an overseas registry or international transaction body is subject to any regulations made under this Act.

Section 23A: inserted, on 26 September 2008, by section 27 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23A heading: amended, on 23 June 2020, by section 42(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 23A(1): amended, on 23 June 2020, by section 42(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 23A(2): amended, on 23 June 2020, by section 42(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 23A(2)(c): amended, on 23 June 2020, by section 42(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 23A(3): amended, on 23 June 2020, by section 42(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

24 Priority of registration

(1)

A direction given to the Registrar by the Minister or the EPA under this Act or an application for the registration of a transaction by an account holder must, as soon as practicable, be processed in the chronological order in which it is received by the Registrar.

(2)

A direction or an application is received by the Registrar when it is recorded as being downloaded into the computer maintained to operate the unit register.

(3)

Subsection (1) applies to an application for the registration of a transaction only if the application is completed to the satisfaction of the Registrar and in accordance with any regulations made under this Act.

Section 24(1): substituted, on 26 September 2008, by section 28(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 24(1): amended, on 23 June 2020, by section 43 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 24(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 24(1): amended, on 8 December 2009, by section 18 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 24(2): amended, on 19 November 2007, by section 19(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 24(3): added, on 26 September 2008, by section 28(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

25 Correction of unit register

(1)

If the unit register records a transaction inaccurately, and the inaccuracy is the result of an error or omission made by the Registrar when registering the transaction, then a request to correct the inaccuracy may be submitted by—

(a)

the EPA or the Minister who gave the direction, if the Registrar registered the transaction following receipt of a direction from the Minister or the EPA; or

(b)

the account holder who applied to register the transaction.

(2)

The request—

(a)

may be made at any time; and

(b)

must specify—

(i)

the inaccuracy; and

(ii)

the correction required; and

(c)

must be in the form, and accompanied by the fees (if any), prescribed in regulations made under this Act.

(3)

If the Registrar is satisfied that the unit register is inaccurate in any respect, the Registrar may

(a)

correct the unit register accordingly; and

(b)

record on the unit register—

(i)

the nature of the correction; and

(ii)

the time that the correction was made; and

(c)

give notification of the correction, as soon as practicable, to—

(i)

any person whom the Registrar considers to be affected by the correction; and

(ii)

an international transaction body (if required to do so); and

(iii)

an overseas registry (if required to do so).

Section 25: substituted, on 19 November 2007, by section 20 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 25(1): substituted, on 26 September 2008, by section 29(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 25(1)(a): substituted, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 25(1)(a): amended, on 23 June 2020, by section 44(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 25(3): amended, on 26 September 2008, by section 29(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 25(3)(c)(ii): replaced, on 23 June 2020, by section 44(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 25(3)(c)(iii): substituted, on 26 September 2008, by section 29(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

26 Unit register must be open for search

(1)

Except as provided in section 13, the unit register must be open at all times for searches by a person via the Registry’s Internet site.

(2)

The Registrar is not required to make publicly available any information that is not listed in section 27.

Section 26(1): amended, on 19 November 2007, by section 21 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 26(2): added, on 26 September 2008, by section 30 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

27 Information accessible by search

(1)

The following information must be accessible by a search of the unit register:

(a)

the following up-to-date information for each account:

(i)

the name of the account holder; and

(ii)

the type of account; and

(iii)

the account number; and

(iv)

the full name, mailing address, telephone number, fax number, and email address of any primary representatives of the account holder; and

(b)

a list of account holders; and

(c)

for each account whose purpose is to hold approved overseas units, the commitment period that the Protocol provides for and that is associated with the account; and

(d)

any other information prescribed in regulations made under this Part.

(2)

The following information must be made accessible by a search of the unit register, and be available by 31 January in each year, in a form that shows the relevant totals at the end of the previous year:

(a)
[Repealed]

(b)
[Repealed]

(c)

the total quantity of New Zealand units issued during that year under section 68 or 178B; and

(d)

the total quantity of New Zealand units transferred for each removal activity during that year; and

(e)

the total holdings of New Zealand units in the Registry; and

(f)

the total holdings of approved overseas units in the Registry; and

(g)

the total holdings of each type of approved overseas units in the Registry; and

(h)

the total quantity of each type of approved overseas units issued during that year; and

(i)
[Repealed]

(j)

the following information in relation to units transferred into the Registry during that year:

(i)

the total quantity of units transferred; and

(ii)

the total quantity of each type of unit transferred; and

(iii)

the identity of the transferring registry or body, including the total quantity of—

(A)

units transferred from each registry or body; and

(B)

each type of unit transferred from each registry or body; and

(k)

the following information in relation to units transferred out of the Registry during that year:

(i)

the total quantity of units transferred; and

(ii)

the total quantity of each type of unit transferred; and

(iii)

the identity of the acquiring registry or body, including the total quantity of—

(A)

units transferred to each registry or body; and

(B)

each type of unit transferred to each registry or body; and

(l)

the total quantity of units transferred between holding accounts in the Registry during that year; and

(m)

the total quantity of each type of unit transferred between holding accounts in the Registry during that year; and

(n)
[Repealed]

(o)

the total quantity of approved overseas units transferred during that year to any sink cancellation account; and

(p)

the total quantity of approved overseas units transferred during that year to any non-compliance cancellation account; and

(q)

the total quantity of units transferred to each general cancellation account during that year; and

(r)
[Repealed]

(s)

the total quantity of units surrendered during that year; and

(t)

the total quantity of each type of unit surrendered during that year; and

(u)

the total quantity of each type of unit into which New Zealand units are converted in accordance with regulations made under this Act.

(v)
[Repealed]

(w)
[Repealed]

(3)

The following information must be accessible by a search of the unit register in a form that shows the relevant totals at the beginning of the previous year:

(a)

the total holdings in each holding account in the Registry (including any holding account held by the Crown) of each type of approved overseas unit issued in—

(i)

the first commitment period starting on 1 January 2008 and ending on 31 December 2012; or

(ii)

the second commitment period starting on 1 January 2013 and ending on 31 December 2020; and

(b)

the total quantity of each type of approved overseas unit in the Registry.

Section 27: substituted, on 26 September 2008, by section 31 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 27(1)(c): replaced, on 23 June 2020, by section 45(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(a): repealed, on 23 June 2020, by section 45(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(b): repealed, on 23 June 2020, by section 45(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(c): replaced, on 1 January 2013, by section 14 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 27(2)(h): replaced, on 23 June 2020, by section 45(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(i): repealed, on 23 June 2020, by section 45(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(j): amended, on 23 June 2020, by section 45(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(j)(iii): amended, on 23 June 2020, by section 45(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(j)(iii)(A): amended, on 23 June 2020, by section 45(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(j)(iii)(B): amended, on 23 June 2020, by section 45(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(k): amended, on 23 June 2020, by section 45(7) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(k)(iii): amended, on 23 June 2020, by section 45(8) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(k)(iii)(A): amended, on 23 June 2020, by section 45(9) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(k)(iii)(B): amended, on 23 June 2020, by section 45(9) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(n): repealed, on 23 June 2020, by section 45(10) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(o): replaced, on 23 June 2020, by section 45(10) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(p): replaced, on 23 June 2020, by section 45(10) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(q): amended, on 23 June 2020, by section 45(11) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(r): repealed, on 23 June 2020, by section 45(12) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(u): replaced, on 23 June 2020, by section 45(13) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(v): repealed, on 23 June 2020, by section 45(13) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(2)(w): repealed, on 23 June 2020, by section 45(13) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(3)(a): replaced, on 23 June 2020, by section 45(14) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 27(3)(b): replaced, on 23 June 2020, by section 45(14) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

28 Search of unit register

A person may, by using the form and paying the fees (if any) prescribed by regulations made under this Act, search the unit register, and obtain a printed search result, in accordance with this Act and any regulations made under this Act.

Section 28: substituted, on 14 November 2006, by section 23 of the Climate Change Response Amendment Act 2006 (2006 No 59).

29 Printed search result receivable as evidence

A printed search result, or a copy of a printed search result, that purports to be issued by the Registrar is receivable as evidence and is, in the absence of evidence to the contrary, proof of any matter recorded in the unit register, including (but not limited to)—

(a)

the ownership of units; and

(b)

the date and time of the registration of a transaction; and

(c)

information that the Registry holds.

Section 29: substituted, on 14 November 2006, by section 23 of the Climate Change Response Amendment Act 2006 (2006 No 59).

30 Recovery of fees

(1)

A fee that is not paid in accordance with regulations made under this Part may be recovered from the person liable to pay the fees by the EPA in any court of competent jurisdiction.

(2)

The EPA may enter into any agreement or arrangement, on any terms that the EPA thinks fit, with any person to collect, or assist in the collection of, any fees that are payable.

Section 30(1): amended, on 26 September 2008, by section 32(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 30(1): amended, on 26 September 2008, by section 32(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 30(2): amended, on 26 September 2008, by section 32(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

30A The Crown or Registrar not liable in relation to searches in certain cases

No action may be brought against the Crown or the Registrar for any loss or damage resulting from—

(a)

an inaccuracy in a search of the unit register; or

(b)

an inaccurate entry or omission in the unit register if the inaccuracy or omission arises from reasonable reliance on information received by the Registrar from—

(i)

an international transaction body; or

(ia)

an overseas registry; or

(ib)

a third party; or

(ii)

an account holder.

Section 30A: inserted, on 14 November 2006, by section 24 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 30A heading: amended, on 26 September 2008, by section 33(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30A(b)(i): replaced, on 23 June 2020, by section 46 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30A(b)(ia): inserted, on 26 September 2008, by section 33(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30A(b)(ib): inserted, on 26 September 2008, by section 33(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Expiry of long-term certified emission reduction units and temporary certified emission reduction units[Repealed]

Heading: repealed, on 23 June 2020, by section 47 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30B Expiry of long-term certified emission reduction units
[Repealed]

Section 30B: repealed, on 23 June 2020, by section 47 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30C Replacement of certain long-term certified emission reduction units
[Repealed]

Section 30C: repealed, on 23 June 2020, by section 47 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30D Expiry of temporary certified emission reduction units
[Repealed]

Section 30D: repealed, on 23 June 2020, by section 47 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Miscellaneous provisions

Heading: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

30E Conversion of New Zealand units into designated assigned amount units for sale overseas or cancellation
[Repealed]

Section 30E: repealed, on 23 June 2020, by section 48 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30F Restrictions on certain New Zealand units allocated to landowners of pre-1990 forest land

(1)

This section applies to any New Zealand units transferred or to be transferred after 31 December 2012 in accordance with the pre-1990 forest land allocation plan issued under section 70.

(2)

[Repealed]

(3)

If the activity listed in Part 1 of Schedule 3 is repealed, the Minister of Finance may issue a direction to the Registrar under section 7 to transfer from any holding account to a cancellation account any New Zealand units to which this section applies.

Section 30F: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30F(1): substituted, on 8 December 2009, by section 20 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 30F(2): repealed, on 8 December 2009, by section 20 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

30G Regulations relating to Part 2

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for any or all of the following purposes:

(a)

prescribing procedures and requirements relating to any powers of the Minister of Finance under subpart 1 of this Part:

(b)

prescribing matters, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, or prohibitions, in respect of—

(i)

the transfer of units, including (but not limited to)—

(A)

the transfer of units from an account holder’s holding account to an account in an overseas registry or international transaction body:

(B)

the transfer of units within the unit register:

(C)

the transfer of units from an overseas registry or international transaction body:

(D)

prohibitions on the transfer of units for the purposes of holding those units in an account in the Registry:

(ii)

the opening or closing of holding accounts:

(iii)

the registration of a successor as an account holder:

(c)

prescribing matters in respect of the holding, surrender, conversion, and cancellation of units, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, procedures, or thresholds:

(d)
[Repealed]

(e)

prescribing procedures, requirements, and other matters in respect of the unit register and its operation, including, but not limited to, matters relating to—

(i)

access to the unit register:

(ii)

the location of the unit register:

(iii)

the hours of access to the unit register:

(iv)

the format of unique numbers to be used in the unit register:

(v)

the allocation of unique serial numbers to New Zealand units and approved overseas units:

(vi)

the exchange of data between—

(A)

the Registry and overseas registries:

(B)

the Registry and an international transaction body:

(vii)

the registration of transactions:

(viii)

the form and content of the unit register:

(f)

prescribing matters in respect of which fees are payable under this Part or regulations made under this Part, the amounts of those fees, and the procedures for payment:

(g)

prescribing procedures, requirements, and other matters in respect of the form, use, and manner of obtaining electronic verification statements to confirm a registration:

(h)

prescribing procedures, requirements, and other matters in respect of searching the unit register, including, but not limited to,—

(i)

the criteria by which a search may be conducted:

(ii)

the method of disclosure:

(iii)

the form of search results:

(iv)

the abbreviations, expansions, or symbols that may be used in search results:

(i)

prescribing forms and notices for the purposes of this Part or regulations made under this Part:

(ia)

prescribing, for the purpose of the definition of international transaction body in section 4, bodies that confirm the validity of transactions relating to accounting of greenhouse gas emissions:

(j)

prescribing, for the purpose of the definition of overseas registry, overseas registries from which or to which units may be transferred to or from accounts in the Registry:

(k)

prescribing the units issued by an overseas registry or international transaction body that may be transferred to accounts in the Registry:

(l)

prescribing procedures for transactions involving approved overseas units:

(m)

prescribing matters in respect of the taking of possession of an emissions unit for the purposes of section 18(1A)(b) of the Personal Property Securities Act 1999:

(n)

in respect of this Part, giving effect to international climate change obligations, including any decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved in accordance with international climate change obligations:

(o)

providing for the matters that are contemplated by, or necessary for, giving full effect to this Part and for its due administration.

(p)
[Repealed]

(q)
[Repealed]

(2)

Regulations made under subsection (1) may be made in respect of different units, transactions, persons, classes of units, subclasses of units, classes of transactions, or classes of persons.

(3)

Any regulation made under subsection (1)(b)(i) or (c) applies to only the following units:

(a)

all units that are not held in an account in the Registry at the time that the regulation comes into force; and

(b)

approved overseas units that are issued before 1 January 2021 (the start of the third commitment period).

(3A)

The amount of fees set under regulations made under subsection (1)(f) must not exceed the amount necessary to enable the recovery of the direct and indirect costs of the Registrar in performing his or her functions under this Part.

(4)

Any regulations made under subsection (1) must be consistent with international climate change obligations.

Section 30G: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30G(1)(b)(i)(A): amended, on 23 June 2020, by section 49(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(b)(i)(C): amended, on 23 June 2020, by section 49(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(b)(iii): inserted, on 23 June 2020, by section 49(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(d): repealed, on 23 June 2020, by section 49(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(e)(vi)(B): amended, on 23 June 2020, by section 49(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(f): amended, on 23 June 2020, by section 49(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(i): amended, on 23 June 2020, by section 49(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(ia): inserted, on 23 June 2020, by section 49(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(j): amended, on 23 June 2020, by section 49(7) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(k): amended, on 23 June 2020, by section 49(8) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(n): amended, on 23 June 2020, by section 49(9) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(n): amended, on 23 June 2020, by section 49(10) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(p): repealed, on 23 June 2020, by section 49(11) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(1)(q): repealed, on 23 June 2020, by section 49(11) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(3): replaced, on 30 November 2020, by section 203 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30G(3A): inserted, on 5 December 2011, by section 9 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 30G(4): amended, on 23 June 2020, by section 49(12) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GA Regulations for auctions to sell New Zealand units

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations under this section that prescribe matters relating to the powers of the Minister under section 6A to sell New Zealand units by auction.

(2)

If regulations are to be made under this section, the Minister must recommend the making of regulations that—

(a)

specify the date on which the sale of New Zealand units by auction commences:

(b)

prescribe an indicative schedule for when auctions are planned to be held:

(c)

specify circumstances in which an auction will not be held:

(d)

specify the format of an auction (for example, a single-round, sealed bid format):

(e)

specify rules for the format of the auction (for example, rules on how bids are made and how tied bids are resolved):

(f)

specify criteria, and requirements for registration, that a person must satisfy to participate in an auction:

(g)

specify financial processes that a person must follow when participating in an auction, including requirements for financial assurance, payment, and delivery:

(h)

provide for the results of each auction to be made publicly available.

(3)

If regulations are to be made under this section, the Minister may recommend the making of regulations for any or all of the following purposes:

(a)

providing for pilot auctions to be conducted, whether before or after the date on which auctions commence:

(b)

prescribing offences and penalties for the breach of regulations made under this section or section 30GD:

(c)

prescribing infringement offences for the breach of regulations made under this section or section 30GD, and prescribing for those offences—

(i)

maximum fines not exceeding—

(A)

$3,000 for an individual:

(B)

$6,000 in any other case; and

(ii)

infringement fees not exceeding—

(A)

$1,000 for an individual:

(B)

$2,000 in any other case:

(d)

prescribing those infringement fees as different amounts for a first, second, or subsequent infringement offence:

(e)

providing for any other matters for the conduct of an auction that the Minister considers relevant to the effective conduct of the auction.

Section 30GA: replaced, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GB Regulations about limits and price control settings for units

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations under this section.

(2)

If regulations are to be made under section 30GA, the Minister must recommend the making of regulations under this section that—

(a)

prescribe the following limits for a calendar year:

(i)

a limit on the New Zealand units available by auction (an individual limit); and

(ii)

a limit on the approved overseas units used (another individual limit); and

(iii)

a limit on the sum of the following (the overall limit):

(A)

the New Zealand units available by auction:

(B)

the New Zealand units available by other means:

(C)

the approved overseas units used; and

(b)

provide that—

(i)

the individual limits must not be exceeded; and

(ii)

the overall limit—

(A)

restricts both the New Zealand units available by auction and the approved overseas units used, in that neither must cause the overall limit to be exceeded; but

(B)

does not restrict the New Zealand units available by other means, in that they may cause the overall limit to be exceeded; and

(c)

provide that any additional units that are allocated under section 86C(5)(b) are not counted as New Zealand units available by other means; and

(d)

provide for how a reserve amount of New Zealand units is to be released for sale at auction if a trigger price is reached or exceeded by bidding at an auction, unless the reserve amount and minimum price are set at zero under paragraph (e); and

(e)

prescribe the following price control settings:

(i)

the reserve amount of New Zealand units for each trigger price, which may be a single reserve amount of zero:

(ii)

the 1 or more trigger prices, unless the reserve amount is zero:

(iii)

the minimum price at which units may be sold by auction, which may be zero.

(3)

The Minister must recommend the making of regulations under this section so that,—

(a)

when the regulations are first made, they prescribe limits and price control settings for each of the next 5 or 6 calendar years; and

(b)

the regulations are amended to ensure that, at all times, they prescribe limits and price control settings for each of the next 5 calendar years.

(4)

Each time the Minister is to recommend that the regulations be amended to apply to a further calendar year under subsection (3)(b), the Minister—

(a)

must consider whether to recommend prescribing new limits and new price control settings for each of the 2 calendar years before that further calendar year; and

(b)

may recommend prescribing new limits and new price control settings for 1 or both of the 2 calendar years after the year in which the amendment is made.

(5)

However, the Minister may make a recommendation under subsection (4)(b) only if,—

(a)

in the year in which the amendment is made, the price control settings have had effect by—

(i)

the release of a reserve amount of units; or

(ii)

the sale of units at the minimum price; or

(b)

the Minister is satisfied that the amendment is justified by the following special circumstances:

(i)

a change that has significantly affected any matter that the Minister was required to consider under section 30GC when recommending the limits and price control settings that are to be amended; or

(ii)

a change in the budget or contribution described by section 30GC(2)(a) or (b) that applies to the year to which the amendment applies; or

(iii)

a force majeure event.

(6)

Regulations made under subsection (2)(a)(ii) may be made in respect of different units, transactions, persons, classes of units, subclasses of units, classes of transactions, or classes of persons.

(7)

See section 30GC for requirements relating to this section.

(8)

In this section,—

approved overseas units used means the number of approved overseas units used by participants in a calendar year by, for example, being transferred to holding accounts or being surrendered

New Zealand units available by auction means the number of New Zealand units sold by auction in a calendar year

New Zealand units available by other means means the number of New Zealand units that are allocated for eligible activities, or provided to participants under negotiated greenhouse agreements, in a calendar year.

Example

Regulations are first made under this section in December 2020. They must prescribe the individual limits, overall limits, and price control settings for the 5 (or 6) years from 2021 to 2025 (or 2026). In 2021, the regulations—

  • must be amended to apply (or in how they apply) to 2026; and

  • may be amended to prescribe new individual limits, overall limits, and price control settings for 2024 and 2025; and

  • may be amended to prescribe new price control settings for 2022 or 2023.

Section 30GB: replaced, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GC Requirements for regulations about limits and price control settings for units

(1)

The Minister must comply with this section in—

(a)

recommending under section 30GB(2), (3), or (4)(b) the making of regulations that prescribe individual limits, overall limits, or price control settings; and

(b)

considering under section 30GB(4)(a) whether to recommend prescribing new individual limits, overall limits, and price control settings for the 2 calendar years before a further calendar year.

(2)

The Minister must be satisfied that the limits and price control settings are in accordance with—

(a)

the emissions budget, and the nationally determined contribution for New Zealand under the Paris Agreement, that applies to—

(i)

the period for which the limits or price control settings are being prescribed; or

(ii)

any period after that, if a budget or contribution exists for that period; and

(b)

the 2050 target.

(3)

However, they need not strictly accord with the budgets or contributions as long as the Minister is satisfied that the discrepancy is justified, after considering the other matters under this section.

(4)

The Minister must consider—

(a)

the main matters; and

(b)

the additional matters, but only in relation to the price control settings.

(5)

The main matters are as follows:

(a)

the projected trends for New Zealand’s greenhouse gas emissions in the 5 years after the current year, including—

(i)

the anticipated volumes of greenhouse gas emissions to which the emissions trading scheme applies (meaning emissions for which participants are required to submit returns or surrender units under this Act); and

(ii)

the anticipated volumes of greenhouse gas emissions to which the emissions trading scheme does not apply:

(b)

the proper functioning of the emissions trading scheme:

(c)

international climate change obligations and instruments or contracts that New Zealand has with other jurisdictions to access emissions reductions in their carbon markets:

(d)

the forecast availability and cost of ways to reduce greenhouse gas emissions that may be needed for New Zealand to meet its targets for the reduction of emissions:

(e)

the recommendations made by the Climate Change Commission under section 5ZOA:

(f)

any other matters that the Minister considers relevant.

(6)

The additional matters are as follows:

(a)

the impact of emissions prices on households and the economy:

(b)

the level and trajectory of international emissions prices (including price controls in linked markets):

(c)

inflation.

(7)

If the Minister makes a recommendation about prescribing limits or price control settings that differs from a recommendation made by the Commission under section 5ZOA, the Minister must, as soon as is reasonably practicable, prepare a report of the reasons for the difference and—

(a)

present a copy of the report to the House of Representatives; and

(b)

make the report publicly available.

Section 30GC: inserted, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GD Regulations for auction monitor

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations under this section.

(2)

If regulations are made, or are to be made, under section 30GA, the Minister may recommend the making of regulations under this section for any or all of the following purposes:

(a)

prescribing a method or process by which the Minister may appoint a person as an auction monitor, which must—

(i)

require the person to be independent of any auction agents and any persons who are likely to be auction participants; and

(ii)

include as functions of the auction monitor—

(A)

validating auction results; and

(B)

publishing reports on the results of auctions:

(b)

specifying that the auction monitor’s functions include any of the following:

(i)

monitoring the conduct of any auction agents and auction participants:

(ii)

providing periodic assessments of the auction system and making recommendations for improvements:

(iii)

calculating additional specified metrics in respect of the auction process and auction results (such as bid volume statistics and relevant aggregate information):

(iv)

any other functions that the Minister considers are relevant to the effective conduct of the auction monitor’s role.

(3)

In this section and section 30GE,—

auction agent means any agent appointed under section 6A(b) to conduct an auction

auction monitor means a person appointed as an auction monitor under regulations recommended under subsection (2)(a)

auction participant means a potential buyer who participates in an auction.

Section 30GD: inserted, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GE Sharing information with auction monitor

(1)

The purpose of this section is to facilitate the provision of information—

(a)

from the EPA, the Registrar, the chief executive, or any auction agent (a provider):

(b)

to the auction monitor (if appointed).

(2)

A provider must provide information to the auction monitor if the information—

(a)

is requested by the auction monitor; and

(b)

is required by the auction monitor to assist in carrying out its functions.

Section 30GE: inserted, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GF Obligation of confidentiality on auction monitor

(1)

This section applies to the auction monitor (if appointed) while, and after, the auction monitor performs its functions or exercises its powers.

(2)

The auction monitor—

(a)

must keep confidential all information that comes into its knowledge when performing its functions or exercising its powers; and

(b)

must not disclose any of that information, except—

(i)

with the consent of the person to whom the information relates or to whom the information is confidential; or

(ii)

to the extent that the information is already in the public domain; or

(iii)

for the purposes of, or in connection with, the performance of its functions or the exercise of its powers; or

(iv)

as provided under this Act or any other Act; or

(v)

in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or

(vi)

for the purpose of complying with international climate change obligations.

(3)

The auction monitor commits an offence under section 30GG if the auction monitor knowingly contravenes this section.

(4)

Nothing in subsection (2) may be treated as prohibiting the auction monitor from—

(a)

providing or publishing general information in relation to its functions; or

(b)

with the prior approval of the Minister, preparing statistical information and supplying it to any person in a form that does not identify any individual.

Section 30GF: inserted, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30GG Offence for breach of auction monitor’s obligation of confidentiality

An auction monitor who knowingly acts in contravention of section 30GF commits an offence and is liable on conviction to either or both of the following:

(a)

imprisonment for a term not exceeding 6 months:

(b)

a fine not exceeding $15,000.

Section 30GG: inserted, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30H Consultation and commencement for certain regulations about units and auctions

(1)

This section applies to regulations made under—

(a)
(b)

section 30GA (auctions to sell New Zealand units):

(c)

section 30GB (limits and price controls for units):

(d)

section 30GD (auction monitor).

(2)

See sections 3A and 3B for consultation requirements that apply to the making of the regulations.

(3)

The regulations come into force—

(a)

3 months after the date of their notification in the Gazette, or on any later date specified in the regulations; but

(b)

if the Minister considers it is in the national interest that they be made urgently, on any earlier date specified in the regulations.

Section 30H: replaced, on 23 June 2020, by section 50 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30I Incorporation by reference in regulations made under section 30G

(1)

The following written material may be incorporated by reference in regulations made under section 30G:

(a)

decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved by any international or national organisation in accordance with international climate change obligations; and

(b)

any standards, requirements, or recommended practices—

(i)

of any international or national organisation that are adopted, agreed on, made, or approved in accordance with international climate change obligations:

(ii)

prescribed in any country or jurisdiction that are adopted, agreed on, made, or approved in accordance with international climate change obligations.

(2)

Material may be incorporated by reference in regulations—

(a)

in whole or in part; and

(b)

with modifications, additions, or variations specified in the regulations.

(3)

Material incorporated by reference in regulations has legal effect as part of the regulations.

(4)

Sections 170 to 177 apply to material incorporated by reference into regulations under section 30G as though all references to a relevant empowering section were references to section 30G and all references to the chief executive were references to the Registrar.

Section 30I: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30I(1)(a): amended, on 23 June 2020, by section 51(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30I(1)(b)(i): amended, on 23 June 2020, by section 51(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30I(1)(b)(ii): amended, on 23 June 2020, by section 51(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30I(4): amended, on 23 June 2020, by section 51(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30IA Minister must obtain greenhouse gas reductions to match certain excess units

(1)

This section applies to the following New Zealand units (if any) to the extent that they cause the emissions budget for an emissions budget period to be exceeded:

(a)

the units sold by auction, after being released in a reserve amount, in that period:

(b)

the units allocated for eligible activities, or provided to participants under negotiated greenhouse agreements, in that period.

(2)

The Minister must ensure, or enter into agreements that require, that the emission of greenhouse gases is reduced, or the removal of greenhouse gases from the atmosphere is increased, by 1 tonne of carbon dioxide equivalent for each of the units, whether by domestic means or offshore mitigation.

(3)

The deadline for the Minister to do so is as soon as is reasonably practicable after the end of the emissions budget period.

Section 30IA: inserted, on 23 June 2020, by section 52 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30J Signing false declaration with respect to regulations made under section 30G or 30GA

Every person who signs a declaration that is required under regulations made under section 30G or 30GA and that is false, knowing the declaration to be false,—

(a)

commits an offence; and

(b)

is liable on conviction to a fine not exceeding $5,000.

Section 30J: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30J heading: amended, on 23 June 2020, by section 53(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 30J: amended, on 23 June 2020, by section 53(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30K Providing false or misleading information to Registrar

(1)

Every person who knowingly provides false or misleading information to the Registrar commits an offence and is liable on conviction to a fine not exceeding,—

(a)

in the case of an individual, $50,000:

(b)

in the case of a body corporate, $200,000.

(2)

Every person who recklessly provides false or misleading information to the Registrar commits an offence, and is liable on conviction to a fine not exceeding $2,000.

Section 30K: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Subpart 3—Infringement offences

Subpart 3: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30L Meaning of infringement offence and infringement fee

In this subpart,—

infringement fee, for an infringement offence, means the infringement fee for the offence prescribed in regulations made under this Act

infringement offence means an offence prescribed as an infringement offence by regulations made under this Act.

Section 30L: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30M Regulations about infringement offences

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for any or all of the following purposes:

(a)

prescribing infringement offences by—

(i)

prescribing a duty, restriction, or prohibition for conduct that is similar to conduct, or similar to an element of conduct, for which there is a duty, restriction, or prohibition under any of sections 30J, 30K(1), 46, 47, 48, 129, 131, 132(1)(a), (b), and (f) to (i), 259, 260, 261(1)(a), (b), (d), and (e), and 264; and

(ii)

providing that a contravention of the duty, restriction, or prohibition is an infringement offence:

(b)

prescribing for the infringement offences—

(i)

maximum fines not exceeding—

(A)

$3,000 for an individual:

(B)

$6,000 in any other case; and

(ii)

infringement fees not exceeding—

(A)

$1,000 for an individual:

(B)

$2,000 in any other case:

(c)

prescribing those infringement fees as different amounts for a first, second, or subsequent infringement offence:

(d)

providing for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.

(2)

Before the Minister recommends the making of regulations under subsection (1)(a), the Minister must be satisfied, after consulting the Minister of Justice, that a contravention of each duty, restriction, or prohibition is sufficiently minor to be appropriate as an infringement offence.

(3)

A person may be prosecuted for, and convicted of, an offence against any provision referred to in subsection (1)(a)(i) even if their conduct is or may be an infringement offence.

Section 30M: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30N Consultation and commencement for regulations about infringement offences

(1)

This section applies to regulations made under section 30M.

(2)

See sections 3A and 3B for consultation requirements that apply to the making of the regulations.

(3)

The regulations come into force 3 months after the date of their notification in the Gazette, or on any later date specified in the regulations.

Section 30N: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30O Proceedings for infringement offences

(1)

A person who is alleged to have committed an infringement offence may—

(a)

be proceeded against by the filing of a charging document under section 14 of the Criminal Procedure Act 2011; or

(b)

be issued with an infringement notice under section 30Q.

(2)

Proceedings commenced in the way described in subsection (1)(a) do not require the leave of a District Court Judge or Registrar under section 21(1)(a) of the Summary Proceedings Act 1957.

(3)

See section 21 of the Summary Proceedings Act 1957 for the procedure that applies if an infringement notice is issued.

Section 30O: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30P Appointment of enforcement officers

(1)

The EPA may appoint 1 or more persons who are employees of the EPA as enforcement officers to exercise 1 or more of the powers and perform the functions conferred on enforcement officers under this subpart.

(2)

Section 93(2) to (5) applies in relation to the appointment.

Section 30P: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30Q When infringement notice may be issued

(1)

An enforcement officer may issue an infringement notice to a person if the enforcement officer believes on reasonable grounds that the person is committing, or has committed, an infringement offence.

(2)

The enforcement officer may require the person to provide their full name and any other information required so that the enforcement officer can issue the infringement notice.

Section 30Q: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30R Infringement notice may be revoked

(1)

The enforcement officer may revoke an infringement notice before the infringement fee is paid or an order for payment of a fine is made or deemed to be made by a court under section 21 of the Summary Proceedings Act 1957.

(2)

An infringement notice is revoked by giving written notice to the person to whom it was issued that the notice is revoked.

(3)

The revocation of an infringement notice under this section is not a bar to any other enforcement action against the person to whom the notice was issued in respect of the same matter.

Section 30R: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30S What infringement notice must contain

(1)

An infringement notice must be in the form prescribed in regulations and must contain the following particulars:

(a)

details of the alleged infringement offence that fairly inform a person of the nature of the alleged offence, including, to any applicable extent, the time and place of the alleged offence:

(b)

the amount of the infringement fee:

(c)

the address of the EPA:

(d)

how the infringement fee may be paid:

(e)

the time within which the infringement fee must be paid:

(f)

a summary of the provisions of section 21(10) of the Summary Proceedings Act 1957:

(g)

a statement that the person served with the notice has a right to request a hearing:

(h)

a statement of what will happen if the person served with the notice neither pays the infringement fee nor requests a hearing:

(i)

any other matters prescribed in regulations.

(2)

The particulars contained in the notice under subsection (1)(d) must include at least 1 method of payment in person.

Section 30S: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30T How infringement notice may be served

(1)

An infringement notice may be served on the person who the enforcement officer believes is committing or has committed the infringement offence by—

(a)

delivering it to the person or, if the person refuses to accept it, bringing it to the person’s notice; or

(b)

leaving it for the person at the person’s last known place of residence with another person who appears to be of or over the age of 14 years; or

(c)

leaving it for the person at the person’s place of business, or place of work, with another person; or

(d)

sending it to the person by prepaid post addressed to—

(i)

the mailing address recorded in a register kept by the EPA under this Act for the person or any primary representative of the person, if they are an account holder; or

(ii)

the person’s last known place of residence or place of business or work; or

(e)

sending it to,—

(i)

if the person is an account holder, the electronic address recorded in a register kept by the EPA under this Act for the person or any primary representative of the person; or

(ii)

if the person does not have a known place of residence or business in New Zealand, an electronic address of the person.

(2)

An infringement notice (or a copy of it) sent by prepaid post to a person under subsection (1) is to be treated as having been served on the person on the fifth working day after the date on which it was posted.

Section 30T: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30U Payment of infringement fees

All infringement fees paid in respect of infringement offences must be paid into a Crown Bank Account.

Section 30U: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30V Reminder notices

A reminder notice must be in the form prescribed in regulations, and must include the same particulars, or substantially the same particulars, as the infringement notice.

Section 30V: inserted, on 23 June 2020, by section 54 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Subpart 4—Regulations setting price of carbon

Subpart 4: inserted, on 1 January 2021, by section 212 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

30W Regulations setting price of carbon

(1)

For the purpose of sections 134 to 134D and any other provisions that refer to regulations made under this section, the Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—

(a)

prescribing the methodology for specifying the price of carbon; and

(b)

specifying the price of carbon by applying the methodology.

(2)

Before recommending the making of regulations, the Minister must take into account—

(a)

the price of the units used to calculate revenue from the emissions trading scheme in the Crown annual financial statements in the preceding 12 months; and

(b)

the price of New Zealand units sold by auction in the preceding 12 months; and

(c)

any changes to the operation of the emissions trading scheme that have affected the price of the units surrendered under that scheme, or that may do so before the end of the next levy year.

(3)

See sections 3A and 3B for consultation requirements that apply to the making of regulations under subsection (1)(a).

(4)

Regulations made under subsection (1)(a) come into force 3 months after the date of their notification in the Gazette, or on any later date specified in the regulations.

Section 30W: inserted, on 1 January 2021, by section 212 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Part 3 Inventory agency

Part 3 heading: inserted, on 26 September 2008, by section 35 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

31 Meaning of greenhouse gas

For the purposes of this Part, despite anything in section 4, greenhouse gas means a gas in the earth’s atmosphere that strongly absorbs and re-emits infrared radiation, and includes indirect greenhouse gases.

Section 31: amended, on 23 June 2020, by section 55(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 31: amended, on 23 June 2020, by section 55(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

32 Primary functions of inventory agency

(1)

The primary functions of the inventory agency are to—

(a)

estimate annually New Zealand’s human-induced emissions by sources and removals by sinks of greenhouse gases; and

(b)

prepare the following reports for the purpose of discharging New Zealand’s obligations:

(i)

New Zealand’s annual inventory report under Articles 4 and 12 of the Convention and Article 7.1 of the Protocol, including (but not limited to) the quantities of long-term certified emission reduction units and temporary certified emission reduction units that have expired or have been replaced, retired, or cancelled; and

(ia)

any report of information by New Zealand under Article 13 of the Paris Agreement; and

(ii)

New Zealand’s national communication (or periodic report) under Article 7.2 of the Protocol and Article 12 of the Convention.

(iii)
[Repealed]

(2)

In carrying out its functions, the inventory agency must—

(a)

identify source categories; and

(b)

collect data by means of—

(i)

voluntary collection; and

(ii)

collection from government agencies and other agencies that hold relevant information; and

(iii)

collection in accordance with regulations made under this Part (if any); and

(c)

estimate the emissions and removals by sinks for each source category; and

(d)

undertake assessments on uncertainties; and

(e)

undertake procedures to verify the data; and

(f)

retain information and documents to show how the estimates were determined.

Section 32(1)(b)(i): amended, on 1 January 2013, by section 20 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 32(1)(b)(i): amended, on 14 November 2006, by section 25 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 32(1)(b)(ia): inserted, on 23 June 2020, by section 56(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 32(1)(b)(iii): repealed, on 23 June 2020, by section 56(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 32(2)(b)(iii): amended, on 26 September 2008, by section 36 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

33 Inventory agency under direction of Minister

(1)

The inventory agency must comply with any direction from the Minister in relation to the performance of its functions under this Part.

(2)

As soon as practicable after giving the direction, the Minister must make a copy of the direction accessible via the inventory agency’s Internet site.

Section 33 heading: amended, on 26 September 2008, by section 37(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(1): amended, on 26 September 2008, by section 37(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(1): amended, on 26 September 2008, by section 37(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(2): amended, on 26 September 2008, by section 37(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(2): amended, on 14 November 2006, by section 26 of the Climate Change Response Amendment Act 2006 (2006 No 59).

34 Record keeping

The inventory agency must keep a record of changes that occur from year to year in—

(a)

the collection of data; and

(b)

the use of methodologies and emission factors.

35 Publication

The inventory agency must publish New Zealand’s annual inventory report, national inventory report, and national communication (or periodic report) in electronic form by placing the reports on a publicly accessible portion of the inventory agency’s Internet site.

Section 35: substituted, on 1 August 2003, by section 27 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 35: amended, on 23 June 2020, by section 57 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Inspectors

Heading: substituted, on 26 September 2008, by section 38 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

36 Authorisation of inspectors

(1)

The Minister may authorise the following persons, provided that they are suitably qualified and trained, to exercise any or all of the powers of, and carry out any or all of the duties of an inspector under this Part:

(a)

employees of the inventory agency; or

(b)

employees of the Ministry for Primary Industries and employees of any other department of the public service prescribed by regulation; or

(c)

employees of New Zealand Forest Research Institute Limited, Landcare Research New Zealand Limited, AgResearch Limited, and employees of any other Crown Research Institute (within the meaning of the Crown Research Institutes Act 1992) prescribed by regulation; or

(d)

employees of the EPA.

(2)

An authorisation is subject to the terms and conditions that are agreed to by the Minister and the chief executive of the agency that employs the person authorised to be an inspector.

(3)

The Minister must supply an inspector with a warrant of authorisation that clearly states the powers and duties of that inspector.

(4)

An inspector who exercises, or purports to exercise, a power conferred on that inspector under this Part must carry and be able to produce, if required to do so,—

(a)

his or her warrant of authorisation; and

(b)

evidence of his or her identity.

(5)

An inspector who holds a warrant of authorisation issued under this section must, on the termination of that inspector’s authorisation, surrender his or her warrant of authorisation to the Minister.

Section 36(1): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(1): amended, on 26 September 2008, by section 39(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(1)(b): amended, on 1 January 2013, by section 21 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 36(1)(c): amended, on 23 June 2020, by section 58 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 36(1)(c): amended, on 5 December 2011, by section 10 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 36(1)(d): added, on 5 December 2011, by section 10 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 36(2): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(3): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(4): amended, on 26 September 2008, by section 39(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(5): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

37 Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases

(1)

For the purposes of collecting information to assist with the estimation of New Zealand’s human-induced emissions by sources and removals by sinks of greenhouse gases, an inspector may, if authorised in writing by the Minister, enter or re-enter land, or premises where any livestock are likely to be held, excluding any dwellinghouse, at any reasonable time during the ordinary hours of business, to—

(a)

carry out surveys, investigations, tests, or measurements (including those that involve leaving measuring equipment on the land or premises):

(b)

take samples of water, air, soil, or organic matter.

(2)

To avoid doubt, the authorisation given by the Minister may be for a series of surveys, investigations, tests, measurements, or samples.

(3)

Reasonable notice, in writing, must be given to the occupier (if any) of the land or premises to be entered that specifies—

(a)

when, and by what means, entry is to be made; and

(b)

the purpose for which entry is required; and

(c)

that the entry is authorised under this section.

(4)

Reasonable effort must be made to give notice under subsection (3) to the owner or owners of the land or premises.

(5)

If the owner or owners are not given notice, reasonable effort must be made to identify any wāhi tapu areas and archaeological sites on the land by other means.

(6)

An inspector who exercises the power of entry under this section may use any assistance that is reasonably necessary to exercise the power.

(7)

A person who provides assistance under subsection (6) may exercise the powers provided to inspectors under subsection (1).

Section 37(1): amended, on 26 September 2008, by section 40 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 37(2): amended, on 26 September 2008, by section 40 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

38 Limitation on power of entry under section 37

The Minister may only authorise an inspector to exercise the power of entry under section 37 if satisfied that the information sought—

(a)

requires specific technical expertise to collect; and

(b)

cannot reasonably be obtained from the occupier or owner of the land or premises.

Section 38: amended, on 26 September 2008, by section 41 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

39 Power of entry for inspection

(1)

An inspector authorised in writing by the inventory agency may enter land or premises (excluding any dwellinghouse) at any reasonable time during the ordinary hours of business, for the purpose of inspection, to determine whether or not a person is complying with regulations made under section 50(2)(a), (c), (e), or (f).

(2)

During an inspection, an inspector may—

(a)

require the production of, inspect, and copy any documents or business records (including electronic documents or records):

(b)

take samples of water, air, soil, or organic matter:

(c)

carry out surveys, investigations, tests, or measurements (including those that involve leaving measuring equipment on the land or premises):

(d)

demand from the occupier any other information that the inspector may reasonably require for the purpose of determining whether or not regulations made under section 50(2)(a), (c), (e), or (f) have been complied with.

(3)

An inspector who exercises the power of inspection under this section must give the occupier or owner reasonable notice of the inspector’s intention to enter the land or premises unless doing so would defeat the purpose of the entry.

(4)

A notice given under subsection (3) must specify—

(a)

when entry is to be made; and

(b)

the purpose for which the entry is required; and

(c)

that the entry is authorised under this section.

(5)

An inspector who exercises the power of inspection under this section may be accompanied by any person or persons reasonably necessary to assist him or her with the inspection.

(6)

A person who provides assistance under subsection (5) may exercise the powers provided to inspectors under subsection (2)(a) to (c).

(7)

Nothing in this section limits the privilege against self-incrimination.

40 Applications for warrants

(1)

A District Court Judge who, on written application made on oath by an inspector authorised by the inventory agency, is satisfied that there are reasonable grounds to believe that there are in or on or under or over any land, premises, or dwellinghouse any documents or other records or things (including samples) for which there are reasonable grounds to believe may be evidence of the commission of an offence under section 46 may issue a warrant authorising the entry and search of that land, premises, or dwellinghouse.

(2)

Every search warrant must authorise the inspector executing the warrant to—

(a)

enter and search the land, premises, or dwellinghouse within 30 working days of the date of the warrant at any time that is reasonable in the circumstances during the ordinary hours of business; and

(b)

require the production, inspection, and copying of documents or business records (including electronic documents or records); and

(c)

demand from the occupier any other information that the inspector may reasonably require for the purpose of determining whether or not the regulations made under section 50(2) have been complied with; and

(d)

seize any documents or business records that the inspector has reasonable cause to suspect may be evidence of the commission of an offence under section 46; and

(e)

take samples of water, air, soil, or organic matter; and

(f)

use any assistance that is reasonably necessary in the circumstances; and

(g)

use any force to enter (whether by breaking doors or otherwise) that is reasonable in the circumstances.

(3)

An inspector may not enter a dwellinghouse unless that inspector is accompanied by a constable.

(4)

A person who provides assistance under subsection (2)(f) may exercise the powers provided to inspectors under subsection (2)(a), (b), (d), (e), and (g).

(5)

Nothing in this section limits the privilege against self-incrimination.

Section 40(3): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

41 Entry of defence areas

Despite anything in sections 37, 39, and 40, an inspector may not enter a defence area (within the meaning of section 2(1) of the Defence Act 1990), except in accordance with a written agreement between the inventory agency and the Chief of Defence Force on the date or dates specified in that agreement.

42 Proof of authority must be produced

If powers are exercised under section 37 or section 39 or section 40, an inspector must, on initial entry, and if asked by the occupier at any time afterward, produce for inspection that inspector’s—

(a)

warrant of authorisation and evidence of his or her identity; and

(b)

written authorisation to enter required under section 37 or section 39 or a search warrant required under section 40.

43 Notice of entry

(1)

If, when powers are exercised under section 37 or section 39 or section 40, the occupier is not present at the time that the written authorisation or search warrant is executed, and notice is not given to the owner or owners under section 37 or section 39, the inspector must, in a prominent place, attach a written notice that shows—

(a)

the date and time of the entry or search; and

(b)

the purpose of the entry or search; and

(c)

the name and phone number of that inspector; and

(d)

an address at which enquiries may be made.

(2)

If the inspector removes, or has removed, any documents or business records from any land, premises, or dwellinghouse, the inspector must hand to the occupier, or attach in a prominent place, a notice that—

(a)

lists all of the items taken; and

(b)

states where those items are being held (and, if they are being held in 2 or more places, state which items are being held in which place); and

(c)

states the procedure that the person must follow to have those items returned.

44 Information obtained under section 39 or section 40 only admissible in proceedings for alleged breach of regulations made under section 50(2)

No document, business record, or other information obtained from a person under section 39 or section 40 is admissible against that person in any criminal or civil proceedings, other than proceedings for an alleged breach of regulations made under section 50(2).

45 Return of items seized

Section 199 of the Summary Proceedings Act 1957 applies, with the necessary modifications, to any property seized or taken by an inspector as if—

(a)

references in that section to a constable were references to an inspector; and

(b)

the reference in that section to section 198 of that Act were a reference to section 39 or section 40 of this Act.

45A Protection of persons acting under authority of this Part

No inspector or person called upon to assist an inspector who does an act or omits to do an act when carrying out a duty, performing a function, or exercising a power conferred on that person by this Part is under any civil or criminal liability in respect of that act or omission unless the person has acted or omitted to act in bad faith or without reasonable cause.

Section 45A: inserted, on 26 September 2008, by section 42 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Offences and penalties

46 Failing to provide required information to inventory agency

Every person who fails, without reasonable excuse, to provide the information to the inventory agency required under regulations made under section 50(2)

(a)

commits an offence; and

(b)

is liable on conviction to a fine not exceeding,—

(i)

in the case of an individual, $5,000; or

(ii)

in the case of a body corporate, $30,000.

47 Obstructing, hindering, resisting, or deceiving person exercising power under Part

Every person—

(a)

commits an offence who—

(i)

wilfully obstructs, hinders, resists, or deceives a person exercising a power conferred on that person under this Part or regulations made under this Part; or

(ii)

wilfully interferes with any survey, investigation, test, or measurement carried out by an inspector under this Part; or

(iii)

refuses to provide information that an inspector has demanded from that person under section 39(2)(d) or section 40(2)(c), except on the grounds of self-incrimination; and

(b)

is liable on conviction to a fine not exceeding,—

(i)

in the case of an individual, $5,000; or

(ii)

in the case of a body corporate, $30,000.

Section 47 heading: amended, on 26 September 2008, by section 43(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 47(a)(i): amended, on 26 September 2008, by section 43(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 47(a)(ii): amended, on 26 September 2008, by section 43(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

48 Signing false declaration in respect of regulations made under section 50

Every person who signs a declaration that is required by regulations made under section 50 and that is false, knowing the declaration to be false,—

(a)

commits an offence; and

(b)

is liable on conviction to a fine not exceeding $5,000.

Section 48 heading: amended, on 26 September 2008, by section 44 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 48: amended, on 23 June 2020, by section 59 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

48A Providing false or misleading information to Registrar
[Repealed]

Section 48A: repealed, on 26 September 2008, by section 45 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Miscellaneous provisions

49 Reporting

For the purpose of reporting to the Secretariat in accordance with international climate change obligations, the Minister may, as and when the Minister thinks fit, direct the inventory agency or the Registrar to provide reports and information to the Minister or directly to the Secretariat.

Section 49: amended, on 23 June 2020, by section 60 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 49: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

50 Regulations

(1)

The Governor-General may, by Order in Council, make regulations for any or all of the following purposes:

(a)
[Repealed]

(b)

prescribing agencies whose employees may act as inspectors under section 36, being—

(i)

a department as defined in section 5 of the Public Service Act 2020; or

(ii)

a Crown Research Institute within the meaning of the Crown Research Institutes Act 1992:

(c)
[Repealed]

(ca)
[Repealed]

(d)
[Repealed]

(e)
[Repealed]

(f)
[Repealed]

(g)
[Repealed]

(h)
[Repealed]

(i)

prescribing forms and notices for the purposes of this Part:

(j)

for the purposes of, and subject to, Part 2, giving effect to international climate change obligations, including any decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved in accordance with international climate change obligations:

(k)

providing for the matters that are contemplated by, or necessary for, giving full effect to this Part and for its due administration.

(2)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations requiring persons to keep and provide information to the inventory agency for the purpose of estimating New Zealand’s human-induced emissions by sources and removals by sinks of greenhouse gases on any or all of the following:

(a)

emissions of greenhouse gases into the atmosphere from industrial or trade premises:

(b)

volumes of fuel produced, distributed, sold, or used, and the nature of the use of that fuel:

(c)

industrial processes, including by-products from industrial processes:

(d)

composition of vehicle fleets and use of vehicles, including, but not limited to, distances travelled:

(e)

imports and exports of hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride:

(f)

imports, exports, manufacture, sales, and the nature of the use of products that contain hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride:

(fa)

the registration of motor vehicles of each class that have air-conditioning systems that contain hydrofluorocarbons or perfluorocarbons:

(g)

waste composition and weight, dimensional characteristics of landfills, and volume of landfill gases extracted and combusted:

(h)

numbers of ruminants and other farmed livestock and their performance:

(i)

areas of crops and amounts produced:

(j)

amount of nitrogenous and lime fertilisers used:

(k)

native and planted trees, the amount of harvesting, the area of land in scrub, and the area of land in other land uses that are necessary to determine land use change under international climate change obligations.

(3)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations requiring persons to provide to the inventory agency information that the person holds on any matter specified in subsection (2) for any year from 1989 to the current reporting year.

(4)

Regulations made under subsection (2) may specify the manner and form in which records must be kept and provided, including specifying that those records must be declared as true, the form of that declaration, and who must sign that declaration.

(5)

Regulations made under subsection (1) or (2) may be made in respect of different persons or classes of persons.

(6)

For the purposes of subsection (5), classes of persons includes local authorities.

(7)

Any regulations made under this section must be consistent with—

(a)

this Act; and

(b)

international climate change obligations.

(c)
[Repealed]

(8)

The Governor-General may, by Order in Council, amend or replace Schedule 1, 2, or 2A so that the schedule sets out an up-to-date form of the relevant document (the Convention, the Protocol, or the Paris Agreement).

Section 50(1)(a): repealed, on 26 September 2008, by section 47(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(b)(i): replaced, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).

Section 50(1)(c): repealed, on 26 September 2008, by section 47(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(ca): repealed, on 26 September 2008, by section 47(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(d): repealed, on 26 September 2008, by section 47(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(e): repealed, on 26 September 2008, by section 47(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(f): repealed, on 26 September 2008, by section 47(6) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(g): repealed, on 26 September 2008, by section 47(7) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(h): repealed, on 26 September 2008, by section 47(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(i): amended, on 26 September 2008, by section 47(9) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(j): amended, on 23 June 2020, by section 61(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(1)(j): amended, on 23 June 2020, by section 61(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(1)(k): amended, on 26 September 2008, by section 47(10) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(2): amended, on 23 June 2020, by section 61(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(2)(fa): inserted, on 1 January 2013, by section 22(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 50(2)(k): amended, on 23 June 2020, by section 61(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(3): amended, on 23 June 2020, by section 61(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(5): substituted, on 26 September 2008, by section 47(12) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(7)(b): replaced, on 23 June 2020, by section 61(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(7)(c): repealed, on 23 June 2020, by section 61(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 50(8): replaced, on 23 June 2020, by section 61(7) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

51 Incorporation by reference in regulations made under section 50

(1)

The following written material may be incorporated by reference in regulations made under section 50:

(a)

decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved by any international or national organisation in accordance with international climate change obligations; and

(b)

any standards, requirements, or recommended practices—

(i)

of any international or national organisation that are adopted, agreed on, made, or approved in accordance with international climate change obligations:

(ii)

prescribed in any country or jurisdiction that are adopted, agreed on, made, or approved in accordance with international climate change obligations.

(2)

Material may be incorporated by reference in regulations—

(a)

in whole or in part; and

(b)

with modifications, additions, or variations specified in the regulations.

(3)

Material incorporated by reference in regulations has legal effect as part of the regulations.

(4)

Sections 170 to 177 apply to material incorporated by reference into regulations under section 50 as though all references to a relevant empowering section were references to section 50 and all references to the chief executive were references to the inventory agency.

Section 51: substituted, on 26 September 2008, by section 48 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 51(1)(a): amended, on 23 June 2020, by section 62(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 51(1)(b)(i): amended, on 23 June 2020, by section 62(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 51(1)(b)(ii): amended, on 23 June 2020, by section 62(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 51(4): amended, on 23 June 2020, by section 62(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

52 Inventory agency must report to Minister on certain matters before certain regulations are made

(1)

Before regulations are made under section 50(2) or (3), the inventory agency must provide a report to the Minister on—

(a)

whether or not the information to be collected under the regulations is reasonably available to the inventory agency by other means, including, but not limited to,—

(i)

voluntary collection; or

(ii)

collection from a government agency that holds the information (provided that the release of the information by that government agency complies with the information privacy principles set out in section 22 of the Privacy Act 2020 and any provisions of the enactment under which the information was collected); and

(b)

any deficiencies with collecting the information using those other means, including, but not limited to,—

(i)

deficiencies in obtaining the required quality of information; and

(ii)

the lack of certainty that all the required information can be provided; and

(c)

whether or not the regulations are likely to place a disproportionate burden on any particular group of persons.

(2)

When preparing a report under subsection (1), the inventory agency must consult any person or government agency that is likely to be affected by the proposed regulations.

(3)

With respect to a report prepared under subsection (1), the Minister

(a)

must have regard to the report and to the results of consultation; and

(b)

may recommend the making of regulations under section 50(2) or (3).

(4)

The Minister may not recommend the making of regulations under section 50(2) and (3) unless he or she is satisfied, on reasonable grounds, that the regulations are necessary to assist New Zealand to meet its international climate change obligations.

Section 52 heading: amended, on 26 September 2008, by section 49(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 52(1): amended, on 26 September 2008, by section 49(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 52(1)(a)(ii): amended, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).

Section 52(3): amended, on 26 September 2008, by section 49(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 52(3)(b): amended, on 23 June 2020, by section 63(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 52(4): amended, on 23 June 2020, by section 63(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 52(4): amended, on 26 September 2008, by section 49(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

53 Consequential amendments
[Repealed]

Section 53: repealed, on 23 June 2020, by section 64 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Part 4 New Zealand greenhouse gas emissions trading scheme

Part 4: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Subpart 1—Participants

Subpart 1: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

54 Participants

(1)

A person is a participant,—

(a)

in respect of an activity listed in Schedule 3, if the person—

(i)

is required under section 180, 186I, 204, or 213 to be treated as the person carrying out the activity; or

(ii)

if subparagraph (i) does not apply, carries out the activity; and

(b)

in relation to an activity listed in Schedule 4, if the person—

(i)

carries out the activity, is registered as a participant under section 57 in respect of the activity, and that registration has taken effect; or

(ii)

becomes a participant under Part 5 in respect of the activity and is not removed from the register in respect of that activity.

(2)

Any reference in the ETS participant provisions to a person or participant carrying out an activity must be read as referring to the person who is to be treated under section 180, 186I, 204, or 213 as carrying out the activity, or if those sections do not apply, to the person or participant carrying out the activity.

(3)

Subsection (1)(a) is subject to any exemption under an Order in Council made under section 60.

(4)

A person who was a participant under subsection (1) continues to be a participant for the purposes of this Act in respect of any obligations (including, but not limited to, the obligation to retain records in accordance with section 67), or entitlements under section 64, arising in respect of an activity listed in Schedule 3 or 4 that the person carried out while a participant.

(5)

The EPA must ensure that the registers, or the information contained in the registers, kept for the purposes of section 56 or 57 are open for public inspection, without fee, on the EPA’s Internet site and in any other form the EPA considers appropriate.

Section 54: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 54(1)(a)(i): amended, on 23 June 2020, by section 65(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 54(1)(a)(i): amended, on 8 December 2009, by section 22(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(1)(b)(ii): amended, on 23 June 2020, by section 65(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 54(1)(b)(ii): amended, on 8 December 2009, by section 22(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(2): amended, on 23 June 2020, by section 65(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 54(2): amended, on 23 June 2020, by section 65(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 54(2): amended, on 8 December 2009, by section 22(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(4): amended, on 8 December 2009, by section 22(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(5): substituted, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

55 Associated persons

(1)

This section applies if an activity listed in Schedule 3 has a threshold below or above which a person becomes a participant.

(2)

If this section applies, persons who are associated persons are to be treated as 1 person for the purpose of determining whether the threshold is met.

(3)

If a threshold for an activity listed in Schedule 3 is met by associated persons, each of the associated persons—

(a)

is to be treated as carrying out the activity for the purposes of this Act; and

(b)

may elect to comply with the ETS participant provisions as a—

(i)

participant in relation to the activity; or

(ii)

member of an unincorporated body; or

(iii)

member of a consolidated group under section 150, if the associated person qualifies to be a member of a consolidated group.

Section 55: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 55(3)(b): amended, on 23 June 2020, by section 66 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 55(3)(b)(ii): substituted, on 8 December 2009, by section 23(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 55(3)(b)(iii): amended, on 8 December 2009, by section 23(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

56 Registration as participant in respect of activities listed in Schedule 3

(1)

A person who carries out an activity listed in Schedule 3 must—

(a)

notify the EPA that the person is a participant in respect of the activity; and

(b)

if the person does not already have a holding account—

(i)

apply to open a holding account under section 18A at the time the person notifies the EPA under paragraph (a); and

(ii)

supply the account number of the holding account, or ensure that the account number of the holding account is supplied, to the EPA within 10 working days of receiving the account number from the Registrar.

(2)

A notice under subsection (1)(a) must—

(a)

be submitted to the EPA within 20 working days of the person becoming a participant in respect of the activity; and

(b)

be in the prescribed form; and

(c)

contain—

(i)

the name of the person; and

(ii)

the details of the activity that the person carries out; and

(iii)

any other information that the EPA may require; and

(iv)

if the person already has 1 or more holding accounts, the account number of the holding account that the person wishes to use for the purpose of section 61(1).

(3)

The EPA must, as soon as practicable after receiving a notice under subsection (1)(a),—

(a)

enter on a register kept by the EPA for the purpose of this section—

(i)

the name of the person; and

(ii)

the activity that the person carries out; and

(b)

notify the person that the person’s name and the activity the person carries out have been entered on the register.

(4)

If the EPA receives a notice under subsection (1)(a) from a person whose name is already on the register kept in accordance with subsection (3), the EPA need not re-enter the person’s name on the register, but must enter next to the person’s name the activity that is specified in the notice, and notify the person that the activity has been entered on the register next to the person’s name.

(5)

To avoid doubt, a person does not carry out an activity listed in Schedule 3, and so does not have to notify the EPA under subsection (1)(a), merely because they—

(a)

deforest pre-1990 forest land that may not be treated as deforested under section 179A(1)(b); or

(b)

deforest land that has ceased to be forest land (and pre-1990 forest land) because it has been offset by pre-1990 offsetting forest land.

Section 56: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 56(1)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(1)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(1)(b)((ii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(2)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(2)(c)(iii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(3)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(5): inserted, on 23 June 2020, by section 67 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

57 Applicant to be registered as participant in respect of activities listed in Schedule 4

(1)

A person who carries out an activity listed in Schedule 4, or who will do so at the time that the person’s registration takes effect, may apply to be registered as a participant in respect of the activity by application to the EPA in accordance with subsection (2).

(2)

An application under subsection (1) must—

(a)

be in the prescribed form; and

(b)

be accompanied by—

(i)

any information that the EPA may require; and

(ii)

the prescribed fee (if any); and

(c)

if the person already has 1 or more holding accounts, contain the account number of the holding account that the person wishes to use for the purpose of section 61(1).

(3)

Any person who does not have a holding account at the time the person submits an application under subsection (1) must—

(a)

apply to open a holding account under section 18A at the time the person submits the application; and

(b)

supply the account number of the holding account to the EPA within 10 working days of receiving an account number from the Registrar.

(4)

Following the receipt of an application under subsection (1), the EPA must register the person in accordance with subsections (5) and (7) if satisfied that the person—

(a)

in respect of the activity listed in Schedule 4 specified in the application—

(i)

is carrying out the activity in the year in which the EPA receives the application; or

(ii)

will carry out the activity in the year in which the person’s registration will take effect in accordance with subsection (8); and

(b)

has met any conditions of registration in respect of the activity in the ETS participant provisions; and

(ba)

has met any eligibility criteria prescribed in relation to the activity; and

(c)

has paid any prescribed fees or charges.

(5)

The EPA registers a person by entering on a register kept by the EPA for the purpose of this section—

(a)

the name of the applicant; and

(b)

the activity carried out by the applicant; and

(c)

the date from which the applicant’s registration as a participant in respect of the activity will take effect in accordance with subsection (8).

(6)

After registering a person under subsection (5), the EPA must notify the person that they have been registered as a participant in respect of the activity and the date from which the registration will take effect.

(7)

If the EPA receives an application under subsection (1) in respect of an activity listed in Part 2, 3, or 4 of Schedule 4, then the EPA must, within 20 working days of receiving the application,—

(a)

decline the application; or

(b)

register the applicant under subsection (5), unless the EPA requires further information from the applicant in order to satisfy himself or herself that the person is carrying out the activity specified in the application, in which case the EPA must either register the person within 20 working days of receiving the further information or decline the application.

(8)

The registration of a person takes effect from the date the person’s name is entered on the register under subsection (5) or any later date required by section 198(2) or 209(2).

(9)

If the EPA receives an application under subsection (1) from a person whose name is already on the register kept in accordance with subsection (5), and registers the person in respect of the activity specified in the application, the EPA need not re-enter the person’s name on the register, but must enter next to the person’s name the activity that is specified in the application, and notify the person that the activity has been entered on the register next to the person’s name.

Section 57: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 57 heading: amended, on 1 January 2013, by section 24(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 57(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(2)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(3)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(4)(a)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(4)(b): amended, on 23 June 2020, by section 68(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 57(4)(b): amended, on 8 December 2009, by section 24(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(4)(ba): inserted, on 1 January 2013, by section 24(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 57(4)(c): added, on 8 December 2009, by section 24(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(5): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(6): replaced, on 23 June 2020, by section 68(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 57(7): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(7): amended, on 8 December 2009, by section 24(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(7)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(8): amended, on 23 June 2020, by section 68(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 57(9): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

58 Removal from register of participants in respect of activities listed in Schedule 4

(1)

A person who is registered under section 57 as a participant in respect of an activity listed in Schedule 4 may apply to have that person’s name removed from the register in respect of the activity by application to the EPA in accordance with subsection (2).

(2)

An application under subsection (1) must—

(a)

be in the prescribed form; and

(b)

be accompanied by the prescribed fee (if any).

(3)

Following receipt of an application under subsection (1), the EPA must—

(a)

note on the register—

(i)

that the applicant has applied to be removed from the register as a participant in respect of the activity; and

(ii)

the date on which the applicant’s name is to be removed in accordance with subsection (4); and

(b)

notify the applicant of the date on which the applicant’s name was, or is to be, removed from the register in accordance with subsection (4).

(c)
[Repealed]

(4)

The EPA must remove the name of an applicant under subsection (1) from the register in respect of the activity specified in the application immediately or on any later date required by section 188(7), 198(3), or 209(3).

Section 58: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 58(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 58(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 58(3)(c): repealed, on 23 June 2020, by section 69(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 58(4): amended, on 23 June 2020, by section 69(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 58(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

59 Removal from register of participants in respect of activities listed in Schedules 3 and 4

(1)

A person who is registered under section 56 or 57 in respect of an activity listed in Schedule 3 or 4 must notify the EPA as soon as practicable if the person ceases, or will cease, to carry out the activity for the remainder of the year and the whole of the following year.

(2)

The EPA must, after receiving notice under subsection (1), or otherwise being satisfied that the person has ceased to carry out the activity for the remainder of the year and the whole of the following year,—

(a)

remove the name of the person from the register in respect of the activity immediately or, if the notice specifies that the person will cease the activity on a future date, on that date; and

(b)

notify the person that the person’s name—

(i)

has been removed from the register in respect of the activity; or

(ii)

if the person’s name will be removed from the register in respect of the activity on a future date, that the person’s name will be removed from the register in respect of the activity on that date.

(3)

This section is subject to sections 200 and 211.

Section 59: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 59(1): amended, on 1 January 2013, by section 25 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 59(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 59(2): amended, on 1 January 2013, by section 25 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 59(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 59(2)(b): amended, on 23 June 2020, by section 70 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 59(3): amended, on 8 December 2009, by section 26(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

59A Removal from register if participant never carried out activity

(1)

The EPA must remove the name of a person from the register in respect of an activity if the EPA is satisfied that the person is not carrying out the activity and has never carried out the activity.

(2)

At least 60 days before removing the name of the person from the register, the EPA must notify the person—

(a)

that the EPA proposes to remove the name of the person from the register; and

(b)

of the reason for the proposed removal; and

(c)

of the actions that the person may take to prevent the removal (for example, provide evidence that the person carries out the activity).

(3)

The EPA may still take action under this section if it is unable to notify the person of its proposal to do so because it is not reasonably practicable to locate them or their address.

Section 59A: inserted, on 23 June 2020, by section 71 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

60 Exemptions in respect of activities listed in Schedule 3

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt any person or class of persons carrying out an activity listed in Schedule 3 from being a participant under this Act in respect of—

(a)

the activity; or

(b)

part of the activity; or

(c)

a proportion of the emissions from the activity; or

(d)

a combination of the matters specified in paragraphs (a) to (c).

(1A)

An Order in Council made under subsection (1) may specify any terms and conditions (including, but not limited to, terms and conditions imposing geographical or operational restrictions) that the Governor-General thinks fit.

(1B)

To avoid doubt, an order made under subsection (1) may exempt a person from being a participant in respect of an activity or emissions that occurred before or after the commencement of the order.

(2)

Before recommending the making of an order under subsection (1), the Minister must be satisfied that—

(a)

the order will not materially undermine the environmental integrity of the emissions trading scheme; and

(b)

the costs of making the order do not exceed the benefits of making the order.

(3)

In determining whether to recommend the making of an order under subsection (1), the Minister must have regard to the following matters:

(a)

the need to maintain the environmental integrity of the emissions trading scheme; and

(b)

the desirability of minimising any compliance and administrative costs associated with the emissions trading scheme; and

(c)

the relative costs of giving the exemption or not giving it, and who bears the costs; and

(d)

any alternatives that are available for achieving the objectives of the Minister in respect of giving the exemption; and

(e)

any other matters the Minister considers relevant.

(4)

While an order made under this section is in force, any person or class of persons in respect of whom the order is made is not required to comply with the obligations imposed on participants under the ETS participant provisions in respect of the matters covered by the order.

(5)

See sections 3A and 3B for consultation requirements that apply to the making or revocation of an order under this section.

(6)

Despite anything in subsection (2) or (3), the Minister may recommend the making of an order under subsection (1) in respect of a person with whom the Crown has signed a negotiated greenhouse agreement if—

(a)

the negotiated greenhouse agreement was signed before 31 December 2005; and

(b)

the order relates to an activity of the person that is covered by the negotiated greenhouse agreement; and

(c)

the order is in force for a period not exceeding the term of the negotiated greenhouse agreement, including any extension of the term made in accordance with the agreement.

(7)

[Repealed]

(8)

[Repealed]

Section 60: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 60(1)(a): amended, on 8 December 2009, by section 27(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1)(b): amended, on 8 December 2009, by section 27(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1)(c): amended, on 8 December 2009, by section 27(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1A): inserted, on 8 December 2009, by section 27(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1B): inserted, on 23 June 2020, by section 72(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(2)(a): amended, on 23 June 2020, by section 72(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(2)(b): amended, on 8 December 2009, by section 27(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(3)(a): amended, on 23 June 2020, by section 72(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(3)(b): amended, on 23 June 2020, by section 72(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(4): amended, on 23 June 2020, by section 72(3) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(5): replaced, on 23 June 2020, by section 72(4) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(6): amended, on 23 June 2020, by section 72(5) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(7): repealed, on 23 June 2020, by section 72(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 60(8): repealed, on 23 June 2020, by section 72(6) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

60A Exemption for participants in activity listed in Part 1 of Schedule 4

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt any person or class of persons carrying out an activity listed in Part 1 of Schedule 4 from any provision or provisions of—

(a)

Part 4 or 5; or

(b)

regulations made for the purposes of Part 4 or 5.

(2)

An order under this section may—

(a)

specify any terms and conditions of the exemption that the Governor-General thinks fit:

(b)

exempt a person generally, or in respect of a specified act, matter, or thing, or class of acts, matters, or things:

(c)

exempt a person in respect of something that occurred before the order was made:

(d)

require the EPA to deal with emissions returns or applications, update the register, or take other actions in respect of acts, matters, or things affected by the exemption.

(3)

The Minister must not recommend the making of an order under this section unless satisfied that—

(a)

the order will not materially undermine the environmental integrity of the emissions trading scheme; and

(b)

the costs of making the order do not exceed the benefits of making the order.

(4)

In determining whether to recommend the making of an order under this section, the Minister must have regard to the following:

(a)

the need to maintain the environmental integrity of the emissions trading scheme:

(b)

the desirability of minimising any compliance and administrative costs associated with the emissions trading scheme:

(c)

the relative costs of giving the exemption or not giving it, and who bears the costs:

(d)

any alternatives that are available for achieving the objectives of the Minister in respect of giving the exemption:

(e)

any other matters that the Minister considers relevant.

(5)

See sections 3A and 3B for consultation requirements that apply to the making or revocation of an order under this section.

Section 60A: inserted, on 23 June 2020, by section 73 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

60B Incorporation by reference in order made under section 60 or 60A

(1)

The following written material may be incorporated by reference in an order made under section 60 or 60A:

(a)

decisions, computer programmes, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters; and

(b)

standards, requirements, or recommended practices of a government agency, standard-setting organisation, or professional body.

(2)

Material may be incorporated by reference in the order—

(a)

in whole or in part; and

(b)

with modifications, additions, or variations specified in the order.

(3)

Material incorporated by reference in the order has legal effect as part of the order.

(4)

Sections 170 to 177 apply to material incorporated by reference in the order as if—

(a)

references to regulations, or regulations made under a relevant empowering section, were references to the order, or to another order made under section 60 or 60A, as appropriate; and

(b)

sections 173(2)(c) and (4)(b) and 174(1)(d) required a targeted notice instead of a