Industrial processes

Companies producing emissions from metal, mineral or chemical transformations may be required to participate in the ETS. Find out more about your obligations.

Certain businesses operating in the industrial processes sector have obligations to report their activities and surrender New Zealand Units (NZUs) under the New Zealand Emissions Trading Scheme (ETS). Some of these have had obligations since 2010, with others having obligations since 2013.

Obligations apply to businesses producing:

  • iron or steel
  • aluminium (including carbon dioxide and perfluorocarbons (PFCs) emissions)
  • clinker or burnt lime (resulting in calcination of limestone or calcium carbonates)
  • glass (using soda ash)
  • gold (if the CO2-equivalent emissions per annum exceed 5000 tonnes).

Obligations apply at the point that the metal, mineral and chemical transformations involved in these processes occur, as this is where gases are emitted. The company that produces the metals, mineral and chemical transformations, and therefore emits the gases, will be the participant.

Obligations

Participants in the industrial processes sector are required to record information about the amount of relevant product produced in a calendar year and submit this as part of their emissions return. Each product has an emissions factor that estimates the emissions per tonne for that process. The gross tonnage of product is multiplied by this emissions factor to give a total emissions figure.

Once an emissions return has been completed, an industrial process participant will be required to surrender​ emissions units corresponding to the amount of emissions reported to the ETS.

Find out how to submit an annual emissions return - Emissions reporting

Allocations

Some emissions-intensive, trade-exposed businesses in the Industrial Processes sector are eligible to receive an allocation of NZUs. The purpose of this allocation is to help offset increased costs under the scheme for companies who are not able to pass the cost on to consumers. Increased costs may be due to a company's obligation to surrender NZUs and/or due to higher energy prices resulting from the ETS.

It is possible for some businesses to have an obligation to surrender NZUs and also receive an allocation.

Please see Industri​al Allocations for more information about the Industrial Allocation process, what activities are eligible and how to apply.