What it a NZU?
A New Zealand Unit, or an emissions unit is the currency of the ETS. It is commonly referred to a "carbon credit".
It is the primary unit of trade in the ETS issued by the Crown.
Participants are required to surrender NZUs to the Crown to meet their
obligations under the scheme. During the transition phase (July 2010 to
December 2012) one NZU will be required to cover every two metric
tonnes of greenhouse gas emissions in a calendar year. After this, one
emission unit will be equal to one tonne of emissions. Participants can
also surrender a range of ‘Kyoto units’ which they can buy overseas.
After the transition phase, the price of an NZU will be
determined in the trading market and will tend to match the
international price of emission units. Participants can sell NZUs
internationally by exchanging them for Kyoto units, within the limits
on international sales set by the Kyoto Protocol.
For more information on NZUs, go to: www.climatechange.govt.nz