This document outlines an integrated proposal for managing unit supply and prices in the ETS. Its objective is to generate a more predictable long-term emission price signal to guide efficient domestic de-carbonisation and cost-effectively manage New Zealand’s overall contribution to global emission reductions.

This inquiry compared two Bills that have the same purpose – to control price signalling in Australian markets. In November 2010, the Hon Bruce Billson MP introduced a Bill to this effect and the Treasurer, the Hon Wayne Swan MP, introduced a government Bill in March 2011. The government Bill followed a consultation process, including...