New Zealand Climate Change Law and Policy Practice Flashcards

This set of vocabulary flashcards covers key concepts in New Zealand's domestic climate change law, specifically regarding emission budgets, the Emissions Trading Scheme (ETS), and agricultural policy.

NDCs

Nationally Determined Contributions that reflect the highest possible ambition under the Paris Agreement.

Emission Budgets

National settings for greenhouse gas reductions that are designed to be ambitious but likely to be technically and economically achievable.

The Gap

The substantive difference between domestic emission budgets and international NDCs, representing a liability the government may have to settle by buying offshore cuts.

GWP*

A methodology for calculating emission budgets and methane targets based on the principle of no additional warming.

He Waka Eke Noa

An industry-led process designed to listen to the agricultural sector and propose a farm emissions pricing scheme outside of the Emissions Trading Scheme.

Emissions Trading Scheme (ETS)

A market-based mechanism and key policy tool that sets a limit on emissions and translates that limit into a price signal for producers and consumers.

Emission Leakage

The phenomenon where carbon-intensive production moves from a country with climate policies to a country with no carbon price, resulting in no net gain for the global climate.

NZU (New Zealand Unit)

Commonly known as the primary unit of trade in the NZ ETS, representing one metric ton of $CO_2$ equivalent emissions.

Afforestation

The planting of trees to create forest area, which allows participants to earn removal units within the New Zealand ETS.

Deforestation

The clearing of forest area, which carries fixed obligations to surrender units under the Climate Change Response Act.

Industrial Allocation

The handing out of free units to firms that are emissions-intensive and trade-exposed to mitigate the risk of emission leakage.

Price Ceiling Mechanism

A system allowing participants to purchase unlimited units from the government for immediate surrender to manage financial obligations strategically.

Climate Change Commission

An independent body that provides expert advice on emission budgets, methane targets, and the effective operation of the ETS.

Article 6 of the Paris Agreement

A provision that allows for the international transfer of emission reduction credits between countries.

Carbon Capture and Storage

Technological facilities that catch carbon from fossil fuel power plants or industrial processes and pump it underground to prevent it from entering the atmosphere.

Section 30 GC of the Climate Change Response Act

The legal provision where the government recently removed the requirement that ETS unit settings must align with international climate obligations.