Advice on NZ ETS unit limits and price control settings
Next due: 2027
About these reports
We provide annual advice on unit limits and price control settings for the New Zealand Emissions Trading Scheme (NZ ETS)
Upcoming reports
Next due: 2027
Previous reports
NZ ETS unit limits and price control settings for 2023–2027 (Released Jul 2022)
NZ ETS unit limits and price control settings for 2024–2028 (Released Apr 2023)
NZ ETS unit limits and price control settings for 2025–2029 (Release Feb 2024)
NZ ETS unit limits and price control settings for 2026–2030 (Released Apr 2025)
NZ ETS unit limits and price control settings for 2027–2031 (Released Apr 2026)
Each year, the Commission must provide advice to the Minister of Climate Change on unit limits and price control settings for the New Zealand Emissions Trading Scheme (NZ ETS). Our advice covers the following five years, with settings recommended for each year within that period.
The Commission produces this advice as required by section 5ZOA of the Climate Change Response Act 2002 (the Act). The scope of this advice
Every year, the Government needs to review how many units can be auctioned over the next five years, so that the NZ ETS auction regulations can be updated.
Before it does this, we advise the Government how many units to auction as well as on the price guardrails that apply at the government auctions. Our advice aims to help line up the units in the scheme with the declining emissions reduction targets.
Auctioned NZUs, which this advice focuses on, form only a small part of the total units in the system. Our other work (such as our upcoming annual report monitoring emissions next due in July 2026, and previous advice on emissions reduction plans) addresses broader prospects for reducing emissions through the NZ ETS and other mechanisms.
What happens once this advice is delivered
Each report is made public when it is tabled in Parliament by the Minister. At that point, we also publish it on our website.
After we have delivered our advice, the Ministry for the Environment will run a formal consultation on proposed settings on behalf of the Minister of Climate Change. Read more about this on their website.
The Government will then make decisions on updates to the NZ ETS unit limit and price control settings.
If the Government decides on settings that differ from our advice, it needs to publicly explain why, and show how those settings will fulfil the statutory requirements set by the Climate Change Response Act 2002.