Levi Gibbs

Published: June 16, 2023

Submitting To: Ministry for the Environment (MfE)

Issue for Business: This submission is a response to MfE's proposed changes to the ETS price and unit settings. We outlined several recommendations and discussion points: 1.) We recommend conducting fewer reviews of price and unit settings and providing clarity on the balance between gross and net reductions. 2.) We recommend avoiding premature reductions in the stockpiled units. 3.) We support maintaining the status quo regarding the CCR and price floor to prevent this from becoming a reference point for particularly high prices. 4.) We emphasise that external constraints exist outside of the ETS that limit the effectiveness of a higher price signal. 5.) We recommend the Government proactively releases any market moving announcements before quarterly auctions, providing market participants sufficient to react to policy changes. The submission outlines the justification for each recommendation and statement.