New Zealand · Emissions trading system
New Zealand Emissions Trading Scheme (NZ ETS)
The NZ ETS, launched in 2008 under the Climate Change Response Act 2002, prices roughly half of New Zealand's greenhouse gas emissions and includes forestry. Agricultural reporting obligations were repealed in 2024, and all four government auctions in 2025 failed to clear because secondary market prices stayed below the floor price.
In forcesince 2008Verified 4 Oct 2026
The Climate Change Response Act 2002 sets the legislative framework for the NZ ETS and brings New Zealand's key climate legislation under one Act. Participants in covered sectors must surrender units for their emissions. The Zero Carbon Amendment Act 2019 added domestic targets to 2050 — net zero for all greenhouse gases except biogenic methane — five-year emissions budgets and the Climate Change Commission.
Legislation imposing processor-level reporting obligations on agriculture was repealed in 2024, removing agricultural activities from the scheme. In 2025 all four auctions failed to clear with secondary prices below the NZD 68 floor, and 6 million units left unsold after the December 2025 auction were permanently withdrawn. A 2025 amendment restricts new ETS registrations of plantation forests on high- and medium-productivity land.
Legal journey
From proposal to operation
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In force
ETS legislation receives Royal assent; forestry covered from 1 January 2008
taxtechnical.ird.govt.nzOfficial -
Milestone
Stationary energy, industrial processes and liquid fossil fuels enter the scheme
ao.parliament.nzOfficial
Each milestone links to the page it was checked against. Dates are given only to the precision the source supports.
Compare
Other emissions trading systems on the Radar
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