“EB

is the total emissions produced by eligible industrial activities in the baseline year of 2005.

“ESY

is the total emissions produced by eligible industrial activities in the year immediately proceeding the specified year, as determined in accordance with regulations made under this Act.”

Clause 22: New Section 84:

Subclause (1): To omit the formula “FA = LA × AB × OSY” (line 28 on page 33) and substitute the following:

FA =

LA × AB × OSY × EB

ESY

To insert, after the definition of “OSY” (after line 6 on page 34) the following:

“EB

is the total emissions produced by eligible industrial activities in the baseline year of 2005.

“ESY

is the total emissions produced by eligible industrial activities in the year immediately proceeding the specified year, as determined in accordance with regulations made under this Act.”

Clause 22: New Section 85A:

Subclause (1): To omit the formula “FA = LA × AB × OSY” (line 18 on page 37) and substitute the following:

FA =

LA × AB × OSY × EB

ESY

To insert, after the definition of “OSY” (after line 7 on page 38) the following:

“EB

is the total emissions produced by eligible industrial activities in the baseline year of 2005.

“ESY

is the total emissions produced by eligible industrial activities in the year immediately proceeding the specified year, as determined in accordance with regulations made under this Act.”

Clause 22: New Section 86:

Subclause (1): To omit the formula “A = LA × AB × OSY” (line 16 on page 38) and substitute the following:

A =

LA × AB × OSY × EB

ESY

To insert, after the definition of “OSY” (after line 30 on page 38) the following:

“EB

is the total emissions produced by eligible agricultural activities in the baseline year of 2005.

“ESY

is the total emissions produced by eligible agricultural activities in the year immediately proceeding the specified year, as determined in accordance with regulations made under this Act.”

Explanatory note

This Supplementary Order Paper amends the Climate Change Response (Moderated Emissions Trading) Amendment Bill. These amendments are as follows:

Clause 22: New Section 82: alters the formula for the determination of allocations to industrial emitters to impose a cap based on 2005 emissions. Applicants will receive a share of the cap based on their share of eligible industrial emissions in the specified year.

Clause 22: New Section 84: applies the above to the calculation of final allocations.

Clause 22: New Section 85A: applies the above to new industrial emitters.

Clause 22: New Section 86: alters the formula for the determination of allocations to agricultural emitters to impose a cap based on 2005 emissions. Applicants will receive a share of the cap based on their share of eligible agricultural emissions in the specified year.

Climate Change Response (Moderated Emissions Trading) Amendment Bill - Amendment paper No 096