Stationary energy
Information for stationary energy participants on which activities are included in the ETS and their reporting and surrender obligations.
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Information for stationary energy participants on which activities are included in the ETS and their reporting and surrender obligations.
The stationary energy sector includes all fossil fuels (gas and coal) used in electricity generation and in the direct production of industrial heat, as well as geothermal energy. It does not include energy used for transport, emissions from industrial processes, or heating in commercial or residential facilities (emissions from these sources are considered elsewhere under the ETS).
The specific stationary energy activities that are included in the ETS are:
Stationary Energy participants in the ETS are mainly organisations carrying out the ‘upstream’ activities described above, such as coal mining.
Some companies further down the supply chain can 'opt-in' to the ETS, and take on a mandatory participant’s obligation if they:
For example, an electricity generator using coal can choose to take on the surrender obligation of the mining company it buys its coal from. In these circumstances, the supplier of coal or gas is not liable for these emissions.
The stationary energy sector has been required to report its emissions since 1 January 2010. Participants are required to record their activity in the above fields and submit this information as part of their annual emissions return.
Participants may also be required to supply information about the composition of the energy imported, mined or used, so that an emissions factor can be allocated to it. This factor is multiplied by the volume of energy to give a total emissions figure. Once an emissions return has been completed, stationary energy participants are required to surrender emissions units corresponding to the amount of emissions reported to the ETS.
More information on how to submit an emissions return can be found in our Emissions Returns page.
The energy sector does not receive an allocation of NZUs because it is not trade exposed. Also because it is able to pass the costs of its ETS obligations on to its customers.
The ETS applies only to emissions generated in New Zealand. Therefore it does not apply to emissions produced in another country by coal exported from New Zealand. This is consistent with our obligations under the UNFCCC and the Kyoto Protocol, where the country importing and using New Zealand coal, for example Japan, is responsible for the emissions. On the other hand, the ETS makes New Zealand companies responsible for emissions from imported coal.
Micro-generation from a renewable source such as hydro is not subject to the ETS because it does not result in greenhouse gas emissions. However, the price of emissions is reflected in the cost of micro-generation from coal, gas and geothermal energy.
There is no nuclear energy generation in New Zealand. The Government has decided that Kyoto units generated through nuclear energy offset projects will not be permitted into our emissions unit registry. They will also not be acceptable for compliance with the ETS.
This is the law that governs our work in this area. Find out more.
In 2010 some changes were made that could affect you. See the Ministry for the Environment's advice.
A glossary of terms used in the ETS, and for the New Zealand Emissions Trading Register.
Submitting an emissions return is done via the Register. Register as a new user or log in here.