newzealand.govt.nz ContactUs List of access keys Home Site Map Privacy FAQs Disclaimer Skip to main content
Decrease Font Size Increase Font Size Print Phis Page

How to apply for an Industrial Allocation

Please read all of the information on this page before starting an application for an Industrial Allocation; including details about the process, application types, deadlines, record-keeping requirements, unincorporated bodies and penalties.​​​​

For assistance, please contact us, or email etsallocations@epa.govt.nz

How to apply

1. Check if you are eligible for an allocation

Eligible activities are listed on the Eligibility page. People or organisations carrying out these activities may apply for an allocation. 

2. Calculate your entitlement

To calculate your entitlement and apply for an allocation, you need to know the amount of prescribed product you produced during the calendar year.

  • For final allocation, you use the actual data from the calendar year for which you're applying (for example, a final allocation for 2016 will use 2016 production data).

  • For provisional allocation, you use your data from the previous calendar year, and "square up" with an allocation adjustment once you have your actual production data for the year which the allocation is for (for example, a provisional allocation for 2017 will use 2016 production data and will square up once 2017 data is available).

When you complete the application form in the NZETR, calculators will be available to download in order to help you work out your allocation. These calculations are also listed below and you may download a copy to help you work out what you allocation may be based on your production volumes:

Provisional Allocation Calculation Worksheet

Use this worksheet to calculate the number of NZUs you may receive for an eligible activity you intend to carry out during 2017.

Final Allocation Calculation Worksheet

Use this worksheet to calculate the number of NZUs you may receive for an eligible activity you carried out during 2016.

Closing Allocation Worksheet

Use this worksheet to calculate your adjustment if you received a provisional allocation for an eligible activity and then stopped carrying out the activity within the same year.

Annual Ad​justment Worksheet

Use this worksheet if you received a provisional allocation for an eligible activity in 2016, but do not want to apply for a provisional allocation for 2017.

3. Complete the online form

Applications for an Industrial Allocation are made via the New Zealand Emissions Trading Register​ (NZETR)​To make an application, you, or your organisation, will need to be registered as an Account Holder in the NZETR. The person making the application will also need to be a registered user of the NZETR with access to the relevant account.

When you are ready to make the application, log in to the NZETR, go to your organisation's account and select 'ETS Activities' from the left hand menu. When the page opens, select 'Industrial Allocations' from the left hand menu. You will then be able to Start the Application.


​​Applications must be received between 1 January and 30 April each year, with the exception of Closing Allocation Adjustment applications which must be submitted within 20 days of cessation of the eligible activity. More information on deadlines is below.

Application types

An Industrial Allocation can be made in arrears or in advance. The below table summarises how each types work:

If you submit a... you receive your NZUs... the production data required is for... next application period you are required to... and if you stop carrying out the acti​vity you are required to...
Provisional Application in advance the previous calendar year submit a provisional or annual adjustment application submit a closing allocation adjustment within 20 days
Final Application in arrears the previous calendar year

If you receive NZUs in advance, you must make an allocation adjustment based on your actual production for that year. This 'squares up' what you received in advance with what you are actually entitled to.  There are two types of allocation adjustment:

  • If you carry out the activity for the whole year, you must calculate your annual allocation adjustment. This can be submitted as part of your provisional application for the next year, or on its own if necessary.

  • If you stop carrying out the activity during the year, you must complete a closing allocation adjustment within 20 working days of stopping the activity.

Deadlines

You must submit your application via the NZETR by the following statutory deadlines:

  • Provisional allocation applications: Apply between 1 January - 30 April of the year for which you wish to receive NZUs. 

  • Final allocation applications and annual allocation adjustments: Apply between 1 January - 30 April of the year following the year for which you wish to receive NZUs.

  • Closing allocation adjustments: May be submitted at any time and must be received by the EPA within 20 working days of the date of cessation of the activity.

Late applications cannot be accepted under any circumstances.

Records you must keep

If you receive NZUs for a certain year, you must keep records of certain information for seven years after the end of the year for which you received them. You must assess for yourself which records will be sufficient to enable certain matters to be verified. Below are the matters you must be able to verify and some examples of the kind of records you might keep.

What must be able to be verified:

Example(s) of records you might keep

Proof that you are eligible to apply

Documents about the activity your business carries out.  You must be carrying out the activity defined in the regulations as an "eligible industrial activity"

NoteYou should also keep proof you responded if:

we requested information from you, and/or

sent a notice warning you that failing to provide the information in time would make you ineligible

Calculations relating to your allocation of NZUs, including any adjustments to the allocated units

You must keep:

A copy of the application summary we sent you for your signature – this contains your allocation calculations

Any information used to prepare your application or a response to any further information requests

You might also need to keep:

A copy of the MFE provided worksheet, if you used it

Records of your own calculations

The amount of product produced during the year

Documents about the product(s) you produce. Your product(s) must meet the definitions in the regulations

Sales records

Inventory records

Other relevant documentation showing the amount of product produced during the year

Unincorporated bodies

For the purposes of Industrial Allocation, an unincorporated body is an identifiable group of associated persons or organisations that jointly carry out an eligible industrial activity that are not incorporated.  Unincorporated bodies include a partnership, joint venture or trustees of a trust. 

Members of an incorporated body are generally specific legal entities in their own right (e.g. limited liability companies, a partner in a partnership, or individual persons).

If an unincorporated body wishes to apply for an industrial allocation, an some details about the unincorporated body and its members will need to be provided before the application can be processed. A form will be sent to you for this purpose if applicable. For more information, contact us, or email etsallocations@epa.govt.nz

Penalties under the Act

There are penalties under the Climate Change Response Act 2002 for providing false information on applications for industrial allocation, and failing to keep required records. Make sure that any data you submit on your application can be supported with your records. Penalties may include being required to repay any over allocated units, a fine of up to $50,000, and/or imprisonment for up to five years.​

​​​