Climate Change Response Act 2002

If you need more information about this Act, please contact the administering agency: Ministry for the Environment
161C Eligible industrial activities

(1)

For the purposes of section 161A(3), an activity is—

(a)

moderately emissions-intensive if the specified emissions from the activity are equal to or greater than 800 whole tonnes per $1 million of specified revenue from the activity, but less than 1 600 whole tonnes per $1 million of specified revenue from the activity:

(b)

highly emissions-intensive if the specified emissions from the activity are equal to or greater than 1 600 whole tonnes per $1 million of specified revenue from the activity:

(c)

trade-exposed unless, in the Minister’s opinion,—

(i)

there is no international trade of the output of the activity across oceans; or

(ii)

it is not economically viable to import or export the output of the activity.

(2)

If an activity meets the criteria in section 161A(3) in accordance with subsection (1), any regulations that prescribe the activity as an eligible industrial activity and the products to be used as the basis for an allocation of New Zealand units in respect of the activity must prescribe the allocative baseline or baselines of each product, calculated in accordance with the following formula:

AB = SE/STA

where—

AB

is the allocative baseline of the product

SE

is the specified emissions from the activity

STA

is the specified total amount of the product from the activity.

(3)

For the purposes of this section,—

(a)

the specified revenue from an activity is the amount of revenue obtained by adding together the revenue from the activity of persons who provided the information referred to in section 161D(1)(e)(i)(A) to the Minister in accordance with a notice under section 161D(1) that contained a description of the activity:

(b)

the specified emissions, in respect of the emissions intensity of an activity, is the number of whole tonnes of included emissions obtained by adding together the included emissions from the activity of persons who provided the information referred to in section 161D(1)(e)(i)(B) to the Minister in accordance with a notice under section 161D(1) that contained a description of the activity:

(c)

the specified emissions, in respect of the allocative baselines of an activity, is the number of whole tonnes of included emissions obtained by adding together the included emissions from the activity of persons who provided the information referred to in section 161D(1)(e)(i)(C) to the Minister in accordance with a notice under section 161D(1) that contained a description of the activity:

(d)

the specified total amount of product from the activity is the amount of the product obtained by adding together the amount of the product produced by each person who provided the information referred to in section 161D(1)(e)(i)(D) to the Minister in accordance with a notice under section 161D(1) that contained a description of the activity.

(4)

Despite subsection (3)(c), the Minister may adjust the number of whole tonnes of included emissions shown in the information referred to in section 161D(1)(e)(i)(C) provided by any persons carrying out an activity specified in a notice given under section 161D(1) after taking into account any electricity-related contract that was in force on the date of the notice that affects the electricity cost increase that any of the persons will face due to the obligation imposed by this Act on participants to surrender units, or any information relating to any such contracts.

(5)

If the Minister has adjusted the tonnes of emissions of 1 or more persons under subsection (4), the Minister may use both the information as originally submitted and as adjusted to calculate different allocative baselines for the relevant product.

Section 161C: inserted, on 8 December 2009, by section 56 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 161C heading: amended, on 23 June 2020, by section 137(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 161C(1): amended, on 23 June 2020, by section 137(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 161C(2): amended, on 23 June 2020, by section 137(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).