Early in 2016 Motu Economic and Public Policy Research gathered together a group of participants from diverse backgrounds and sectors to engage in a deep dialogue on key issues that affect the New Zealand Emissions Trading Scheme (NZ ETS) in order to generate new insights and strategic options to improve its effectiveness.

Backed by a series of four working papers and four meetings in Wellington, dialogue participants came together in March 2017 to discuss an integrated proposal for managing unit supply and prices in the NZ ETS in a way that generates more predictable price signals to guide domestic decarbonisation. This document presents the proposal that emerged from the group’s work.