The New Zealand government raised the country's 2023 Emissions Trading Scheme (ETS) carbon allowance price and volume settings on December 15 to levels significantly below those advised by its national climate body.
Under the New Zealand Emissions Trading Scheme (NZ ETS), the government distributes allowances that represent emission entitlement of every metric tonne of carbon dioxide equivalent through a mix of free allocations and auctions.
The allowances, known as New Zealand Units (NZUs), are auctioned quarterly and can be traded on the secondary market by ETS participants before being surrendered to the government by the end of the compliance year.