These regulations, which come into force on 1 January 2026, amend the Climate Change (Eligible Industrial Activities) Regulations 2010.

These regulations—

• amend regulation 6 to update the electricity allocation factor, which is one of the matters used to determine the allocative baseline for products of eligible industrial activities, from 0.554 to 0.516 tonnes of CO₂e per megawatt hour of electricity; and

• amend regulation 19 to prescribe a new product (product AA) to be used as the basis of an allocation of New Zealand units for the eligible industrial activity of manufacturing from cold ferrous feed; and

• further amend regulation 19 to prescribe a methodology for calculating the total amounts produced in a year of product AA and product A (which, without the methodology, is indistinguishable from product AA) that—

  • is based on the amounts of molten ferrous feed (in the case of product AA) and cold ferrous feed (in the case of product A) used in the year; and

  • enables different allocative baselines to be prescribed and applied in proportion to the amount of each product; and

• replace Schedule 2 to update the allocative baselines for products of eligible industrial activities; and

• insert a transitional provision into Schedule 1 to provide that the updated allocative baselines will apply in determining the level of allocation that a person is entitled to receive for 2025, even if they have already received a provisional allocation for 2025.