Guides
Guide to Opening a Holding Account in the NZEUR
December 2011
This guide is for persons who wish to open an NZEUR Holding Account for the purposes of:
- receiving emission units either as an entitlement from the Government or as a result of private emission unit trading
- surrendering emission units from the Holding Account to meet a Participant obligation under the New Zealand Emissions Trading Scheme (NZ ETS)
- facilitating private trading of emission units including the export of emission units.
Preconditions
- You will need to use a computer with internet access to navigate to www.eur.govt.nz
- You must already be a Registered User before applying to open a Holding Account.
Important Notes
- The Registered User that applies to open a Holding Account will automatically be designated as a Primary Representative and be able to operate the Holding Account (other Primary Representatives may also be authorised).
- Applications to open a Holding Account can only be approved by the Registrar of the NZEUR once properly completed Account Holder Declaration forms have been received.
- All Account Holders must meet the qualifying criteria set out in Regulation 3 of the Climate Change (Unit Register) Regulations 2008 available here.
- The NZEUR Registrar may request additional information relating to an application to open a Holding Account.
- Until a Holding Account is approved by the NZEUR Registrar, emission units cannot be deposited into it.
- Opening a Holding Account does not mean that an Account Holder has automatically been registered as a participant in the New Zealand Emissions Trading Scheme (NZ ETS); however, opening a Holding Account is the first step towards becoming a registered participant of the NZ ETS (NZ ETS registered participants are required to have Holding Accounts).
- If you intend to become a registered participant of the NZ ETS there are some important considerations for you to take into account before opening a Holding Account or authorising Primary Representatives to operate the account.
Key Terms
| Term | Definition |
|---|---|
| Registered User | A person who has been authorised by the NZEUR Registrar to use the NZEUR online system, including opening Holding Accounts. |
| Username | The unique name used by a Registered User to log on to the NZEUR (in conjunction with a unique password) in order to access a Holding Account. |
| Holding Account | A type of NZEUR account in which emission units are held. Emission units may be transferred into or out of Holding Accounts by Primary Representatives. The NZEUR Registrar may also transfer emission units into Holding Accounts. Each Holding Account has one Account Holder and must have at least one, and may have up to five, Primary Representatives. |
| Account Holder | The person or organisation who is the legal owner of the Holding Account and the emission units held in it. Account Holders remain legally responsible for their Holding Account and any actions of Primary Representatives authorised to operate the Holding Account. In some cases the Account Holder will consist of one person; in other cases the Account Holder may consist of more than one person. |
| Account Holder Declarations | The Climate Change (Unit Register) Regulations 2008 require an account holder to make declarations in order to open a Holding Account or appoint a primary representative. These declarations are contained in the Account Holder Declaration form which will be emailed to the Account Holder as part of the Holding Account application process. |
| Account Holder (Organisation) Type | The Account Holder (Organisation) Type identifies the nature of the Account Holder (for example, limited company, partnership, trust) which determines the nature of additional information that will need to be provided when opening a Holding Account. For example, if the Organisation Type is an unincorporated trust or partnership, the full legal names of each and every individual trustee or partner, and their contact details, will need to be provided to the NZEUR Registrar. |
| Primary Representative(s) | A person who has been authorised by the Account Holder to operate the Holding Account. Only an individual (for example, a natural person, not an incorporated body) who meets the qualifying criteria set out in the Climate Change (Unit Register) Regulations 2008, and is a Registered User of the NZEUR, will be approved as a Primary Representative. Account Holders who are individuals may nominate themselves to be the Primary Representative of their own Holding Account. Primary Representatives will receive notices from the NZEUR Registrar relating to the Holding Account. |
| ETS Registered Participant | A person or organisation that has registered as either a mandatory or voluntary participant in the NZ ETS. All NZ ETS participants must have a Holding Account. |
| Preparer | A person who has been authorised by the Account Holder to prepare transactions involving the Holding Account. |
| Approver | A person who has been authorised by the Account Holder to approve transactions involving the Holding Account. |
| Authorised Person(s) | An Authorised Person is authorised to make declarations on behalf of an Account Holder. Declarations are required to open or close a Holding Account, or to add or remove a Primary Representative. Authorised persons are appointed by using the Supplementary Authority form attached to the Account Holder Declaration form. |
Common Questions and Answers
Do I need an account? All NZ ETS participants (whether voluntary or mandatory) must have an NZEUR Holding Account. Other people who are not NZ ETS participants wishing to receive and trade emission units will also need to have an NZEUR Holding Account.
Is my computer suitable to open a Holding Account online? Completing an online application via the NZEUR website to open a Holding Account does not require high speed broadband or computer with a high specification.
Will opening a Holding Account cost me anything? No.
What is the difference between an Account Holder and a Primary Representative? The Account Holder legally owns the Holding Account and any emission units in it. The Primary Representative is a person authorised to operate the Holding Account on behalf of the Account Holder. Only Primary Representatives may access the Holding Account to view account balances or undertake transactions. Each Holding Account can have more than one Account Holder and up to five Primary Representatives. In certain cases the Account Holder and Primary Representative will be identical. As an additional level of protection, Account Holders may assign the roles of preparer and approver to the Primary representatives, so that two people are required to carry out every transaction.
What is the difference between a Primary Representative and an Authorised Person? A Primary Representative is authorised to operate a NZEUR Holding Account. An Authorised Person is authorised to make declarations on behalf of an Account Holder. Declarations are required to open or close a Holding Account, or to add or remove a Primary Representative. Authorised persons are appointed by using the Supplementary Authority Form attached to the Account Holder Declaration Form. At least one Primary Representative is mandatory; appointing an Authorised Person is optional.
How will I know when my Holding Account is open and available for use? After submitting your online application to open a Holding Account, you will receive an email from the NZEUR containing an Account Holder Declaration form. This form must be signed by each and every Account Holder for that Holding Account, and returned to the NZEUR Registrar. Once the NZEUR Registrar is satisfied that you have met all of the account opening requirements (including providing any additional information such as identification documents) your Holding Account will be opened. An email will be sent by the NZEUR Registrar to each Primary Representative’s email address advising them that the Holding Account has been opened.
How long will it take for my application to open a Holding Account to be approved? Upon receipt of a properly completed application and signed Account Holder Declaration form your application will normally be processed within two working days.
Why must the Account Holder name and the name of the NZ ETS Participant or members of an Unincorporated Body be identical? Under the Climate Change Response Act 2002 every NZ ETS Participant must have a Holding Account. Participants may not use somebody else’s Holding Account. If you are not sure who the account holder(s) for a proposed NZ ETS Participant should be, then please obtain professional advice about this before opening a Holding Account.
Important Considerations for NZ ETS Participants
- Applying to open an NZEUR Holding Account is a mandatory first step of applying to be registered as an NZ ETS participant. Applicants to be registered as an NZ ETS participant will be asked to provide an NZEUR Holding Account number as part of their NZ ETS registration application.
- With the exception described below under point 3, the Account Holder name must be identical to the name of the proposed NZ ETS participant. Accordingly, before opening an NZEUR Holding Account, careful thought should be given to the precise name of the proposed NZ ETS participant; the NZEUR Holding Account should be opened in precisely that name. In determining the precise name of the proposed NZ ETS participant, consideration should be given to the following:
- The legal form of the participant (for example one or more natural persons, limited company, partnership, trust)
- In the case of forestry participants:
- the legal land owner(s) whose names will be registered on land titles (with the possible exception of the legal owners of land held in trusts by an unincorporated trust formed under Part 12 of the Te Ture Whenua Maori Act 1993 or Maori Land Act 1993)
- the names of parties to forestry right agreements, registered leases or Crown conservation contracts
- If you are not sure who the Account Holder is for a proposed NZ ETS participant, please obtain professional advice about this before opening an NZEUR Holding Account.
- If the proposed NZ ETS participant is an “Unincorporated Body” (as defined by section 4 and for the purposes of section 157 of the Climate Change Response Act 2002) then all the Members of the Unincorporated Body must be the joint account holders. The legislation can be found at www.climatechange.govt.nz.
- The procedure for becoming a registered NZ ETS participant is completely separate from the process of opening an NZEUR Holding Account (not all people opening a Holding Account become NZ ETS participants, but all ETS participants must have a Holding Account). For information on the registration process for NZ ETS participants please see the following websites:
- Forestry sector participants: www.maf.govt.nz/sustainable-forestry
- All other sectors: www.eur.govt.nz (details will be made available as each sector enters the NZ ETS).
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.
