Climate Change (Auctions, Limits, and Price Controls for Units) Amendment Regulations 2024
2024/198
Climate Change (Auctions, Limits, and Price Controls for Units) Amendment Regulations 2024
Cindy Kiro, Governor-General
Order in Council
At Wellington this 23rd day of September 2024
Present:
Her Excellency the Governor-General in Council
These regulations are made under sections 30GA and 30GB of the Climate Change Response Act 2002—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister of Climate Change made after complying with the requirements in sections 3A, 3B, and 30GA to 30GC, and 30H of that Act.
Regulations
1 Title
These regulations are the Climate Change (Auctions, Limits, and Price Controls for Units) Amendment Regulations 2024.
2 Commencement
These regulations come into force on 1 January 2025.
3 Principal regulations
These regulations amend the Climate Change (Auctions, Limits, and Price Controls for Units) Regulations 2020.
4 Regulation 25 amended (Requirement to provide collateral for bids)
(1)
In regulation 25(1), replace paragraph (a) with:
(a)
collateral for the bid; and
(2)
In regulation 25(5), replace paragraph (a) with:
(a)
multiple bids by a bidder at an auction; or
(3)
In regulation 25(6), insert in their appropriate alphabetical order:
collateral is equal to at least 25% of the maximum value
cumulative bid volume, in relation to calculating the maximum value for more than 1 bid at more than 1 price by a bidder, means the sum of bid volumes at each bid price as calculated from highest to lowest bid price
(4)
In regulation 25(6), replace the definition of maximum value with:
maximum value,—
(a)
unless paragraph (b) applies, means, in relation to a bid, the amount calculated by multiplying the bid volume by the bid price; or
(b)
in relation to calculating the collateral for more than 1 bid at more than 1 price by the bidder, means the amount calculated by multiplying the cumulative bid volume by the bid price and taking the cumulative bid with the highest result
5 Schedule 3 amended
In Schedule 3, replace the limits table and the price control settings table with the corresponding tables set out in the Schedule of these regulations.
Schedule Schedule 3 amended
Limits
| Column 1 | Column 2 | Column 3 | Column 4 | |||
|---|---|---|---|---|---|---|
| Calendar year |
New Zealand units available by auction (millions) |
Approved overseas units used (millions) |
Overall limit on units (millions) |
|||
| 2025 | 13.1 | 0.0 | 19.1 | |||
| 2026 | 11.7 | 0.0 | 17.4 | |||
| 2027 | 10.2 | 0.0 | 15.9 | |||
| 2028 | 8.6 | 0.0 | 14.2 | |||
| 2029 | 7.1 | 0.0 | 12.6 |
Price control settings
| Column 1 | Column 2 | Column 3 | Column 4 | |||
|---|---|---|---|---|---|---|
| Calendar year |
Minimum price below which units must not be sold by auction ($) |
Trigger price for sale of reserve amount of New Zealand units ($) |
Reserve amount of New Zealand units (millions) |
|||
| 2025 | 68 | 193 242 |
2.6 4.5 |
|||
| 2026 | 71 | 203 254 |
2.3 4.2 |
|||
| 2027 | 75 | 213 267 |
2.1 3.8 |
|||
| 2028 | 78 | 224 280 |
1.9 3.4 |
|||
| 2029 | 82 | 235 294 |
1.7 3.0 |
Nicola Purvis,
Acting Clerk of the Executive Council.
Explanatory note
This note is not part of the regulations but is intended to indicate their general effect.
These regulations, which come into force on 1 January 2025, amend the Climate Change (Auctions, Limits, and Price Controls for Units) Regulations 2020 (the principal regulations).
The amendments—
adjust the method for calculating the collateral required if a person submits multiple bids at different price points at an auction; and
replace the tables in Schedule 3 of the principal regulations to prescribe limits and price control settings for 2025 and each of the next 4 years.
Date of notification in Gazette: 26 September 2024.
These regulations are administered by the Ministry for the Environment.