Taine Randell
Jason FoxBuyers
From the 1st of July 2010, the first emitters will enter into the scheme. This means that NZ will have a domestic carbon market that is liquid. There is a projected shortage of credits currently available on the market to meet NZ’s demand. This will drive up prices towards the $25 cap currently in place until Dec 31 2012.
Key Dates
| Sector | Entry date | Transitional obligation until December 2012 (CP1) | Unit allocation terms |
| Forestry | 1 January 2008 | One unit per tonne of emissions (100%) or fixed surrender price $NZ25/tonne | Allocation of free units to pre-1990 forests (which may be sold internationally) Otherwise units to be auctioned |
| Transport (Liquid fossil fuels) | 1 July 2010 | One emission unit for two tonnes emissions (50%) or fixed surrender price $NZ25/tonne | Units to be auctioned |
| Stationary energy | 1 July 2010 | One unit for two tonnes (50%) or fixed surrender price $NZ25/tonne | Units to be auctioned |
| Industrial processes that are not trade-exposed emission-intensive | 1 July 2010 | One unit for two tonnes (50%) or fixed surrender price $NZ25/tonne | Units to be auctioned |
| Trade-exposed emission-intensive Industrial processes | 1 July 2010 | One unit for two tonnes (50%) or fixed surrender price $NZ25/tonne | Free allocation on intensity/production basis phasing out from 2013 at 1.3% each year. |
| Agriculture | 1 January 2015 | No obligation in CP1 except reporting from 1 January 2012. | Free allocation on intensity/production basis phasing out from 2016 at 1.3% each year. |
| Fishing | 1 July 2010 | One unit for two tonnes (50%) | 90% of 2005 emissions allocated free to fishing quota holders until January 1, 2012 then units to be auctioned |