Guide to Emissions Returns (2011) - other sectors

 December 2011

This guide is for Synthetic Greenhouse Gases, Waste and Agriculture Participants in the New Zealand Emissions Trading Scheme (NZ ETS) who are obliged to account for emissions from their activities from 1 January 2012.

Emissions Returns - 2011 Calendar Year

Standard reporting templates based on the calculation formulas as set out in regulations will be made available once regulations come into force on 1 January 2011 to those mandatory and voluntary participants who have registered for voluntary reporting in the NZ ETS.

The development of an online emissions reporting tool for the Synthetic Greenhouse Gases, Waste and Agriculture sectors started during 2011.  It is possible that participants will be able to submit emissions returns online from 1 January 2012 for the 2011 voluntary reporting year. Otherwise the standard reporting templates will be used to complete emissions reporting for this first reporting year. The online tool wil be avaiable for mandatory reporting on 1 January 2013 for the mandatory reporting year of 2012.

Key Dates

Voluntary Reporting

1 January 2011

Voluntary reporting period for the SGG, Waste and Agriculture sectors began.

31 December 2011

Voluntary reporting period ended.

1 January 2012

Voluntary emissions returns (optional) can be submitted.

31 March 2012

Deadline for submitting voluntary emissions returns. No penalties or unit surrender obligations apply.

Mandatory Reporting

1 January 2012

Mandatory reporting period begins

31 December 2012

End of mandatory reporting period.

1 January 2013

Mandatory emissions returns can be submitted.

31 March 2013

Deadline for submitting mandatory emissions returns. No unit surrender obligations apply, however reporting penalties now apply.

First compliance reporting

For the Synthetic Greenhouse Gases, and Waste sector obligations (or entitlements) begin 1 January 2013.  First unit surrender for Synthetic Greenhouse Gases, and Waste sector is due by 31 May 2014 for the 2013 reporting year.

For the Agriculture sector obligations begin 1 January 2015. First unit surrender is due by 31 May 2016 for the 2015 reporting year.

Key Terms

Terms you need to be familiar with before submitting an emissions return:

Common Questions and Answers

Why do I need a holding account? Participants in the NZ ETS are required to open a holding account for the purposes of receiving or surrendering emissions units.

When do I have to submit an emissions return? You must submit a return in the period from 1 January to 31 March immediately following a calendar year in which emissions reporting is required. For example, you must submit a return in the period from 1 January 2013 to 31 March 2013 for the mandatory reporting period of 2012.  Participants who choose to register during 2011 for voluntary reporting will file a return in the period 1 January 2012 to 31 March 2012 for the 2011 voluntary reporting year.

Unit surrender obligations (or entitlements to units) will start on 1 January 2013 for the Synthetic Greenhouse Gases and Waste sectors and 1 January 2015 for the Agriculture sector.
 

How will I know when I have a return due? An emissions return is due in the first quarter of each year (starting 1 January 2012). A reminder notice will be emailed by the NZEUR in the lead-up to, and during, each submitting period.

What can I do if I know that I cannot submit my emissions return before 31 March?   You can apply for an extension before the emissions return due date of 31 March.  The EPA may grant you an extension of a period of no more than 20 working days if satisfied that you are unable to submit your emissions return by this due date.  Any extension granted will relate only to the submitting of the emissions return and not the surrender due date.

Who do I submit my emissions returns to?  You need to submit your emissions return to the EPA, who is responsible for administering the NZ ETS.

Do I have to verify my emissions before submitting the emissions return? You don’t need to have your emissions returns verified before you submit them. However, it is recommended, but not required, that participants undertake a third party verification process, following similar standards and processes for verifying data to those already used in-house, for example with financial auditing. This will assist in providing rigour and credibility to information reported. 

Do I have to do an emissions return electronically? Yes you must submit an emissions online return through the NZEUR.

Can I surrender units before submitting an emissions return? No, units can only be surrendered following the submitting of an emissions return.  The emissions return will assess the number of units required to be surrendered or entitled to be received. The due date for surrendering units is 31 May of each year. 

What will happen if I do not surrender units by the due date of 31 May?  It is important that you meet your surrender obligations by 31 May of each year; otherwise you may be subject to a penalty of $30 for each emission unit not surrendered. 

How do I surrender units? Primary representatives will transfer the number of units required to be surrendered to a designated Crown Surrender Account.  The due date for the surrender of units is 31 May of each year.

What information should my emissions return contain?  Your emissions return will contain the information set out in the regulations in respect to the Liquid Fossil Fuels, Other Removal Activities, Stationary Energy and Industrial Processes sectors which set out the methodologies for calculating emissions in respect of each activity.  The regulations also specify information participants are required to collect to use in these emissions calculation methodologies.  Further guidance on reporting on emissions in respect of each sector is available at www.climatechange.govt.nz.

What emissions factor is used? Default emissions factors are used in calculating total emissions.  Default emissions factors are set out in the Regulations by sector.  Some activities are eligible for a unique emissions factor.  These eligible activities are set out in the Climate Change (Unique Emissions Factors) Regulations 2009.

What happens if I identify a mistake in a submitted emissions return? You are obliged to provide correct information in an emissions return.  The administering agency may reduce any financial penalty arising from the mistake by up to 100% if you voluntary disclose that you have a made a mistake before the administering agency makes it apparent that it is looking into your emissions return.

What information do I need to keep for reporting my emissions and removals?  You need to keep sufficient records for the administering agency for the NZ ETS to be able to verify; the greenhouse gas-producing or removing activities carried out; the emissions and/or removals resulting from those activities; the number of emission units you need to surrender; the number of emission units you are entitled to receive, if any; and other information required by regulations.

How long do I need to keep the records for?  You need to keep records for at least seven years from the end of the year they relate to.

How do I submit an emissions return as part of a Consolidated Group? The individual participant members of a “group” can elect to form a consolidated group (A group for the purposes of the NZ ETS has the same meaning as section 2(1) of the Financial Reporting Act 1993 – it means a group comprising a reporting entity and its subsidiaries).  Each consolidated group must appoint a nominated entity (who must be part of the group, but does not have to be an NZ ETS participant) who will act as an “agent” for the consolidated group and submit a single emissions return covering all of the consolidated group’s activities.   It is recommended that you contact the administering agency for more information on the requirements of consolidated groups under the NZ ETS.

Which Units Can I Use to Meet Surrender Obligations?

This guide is based on the law at the date of issuance. The information in this guide does not alter the laws of New Zealand or other official guidelines or requirements. Readers of this guide should take specific advice from qualified professional people before undertaking any action following information received from this guide.