Development of New Zealand

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Development of New Zealands national registry
legislative issuesStuart CalmanManager,
Environmental Issuesstuart.calman_at_med.govt.nzwww
.med.govt.nz
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Legislation Process

• Two-stage approach to legislation agreed in Sept
  2001
• minimum legal measures to give effect to NZs
  international obligations under UNFCCC and Kyoto
  Protocol
• later, if needed, implement policy measures any
  responsibilities assigned to domestic entities
• Institutional issues finalised November 2001
• providing for Crown trading, registry and
  inventory functions
• Introduction of Climate Change Response Bill 20
  May 2002
• NZ convention to have legislative and other
  measures in place prior to ratification of
  treaties
• To be enacted prior to ratification August 2002

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Institutional Arrangements

• Separation of functions
• Minister of Finance to manage NZs holdings of
  units and to trade on international market -
  Subpart 1
• Ministry of Economic Development (MED) to carry
  out registry functions including ensuring a unit
  register is maintained - Subpart 2
• Ministry for the Environment to carry out the
  functions of the national inventory agency -
  Subpart 3

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Key Registry Provisions

• Purpose
• ensure accurate accounting of units
• ensure accurate, transparent and efficient
  exchange of information between the Registry and
  other registries and the independent transaction
  log
• facilitate the exchange of information between
  the Registrar and the Minister of Finance
• Based on Article 7.4 guidelines and supplemented
  by elements usual to domestic registries
• Creation of Registrar - statutory appointment

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The Registrar

• must give effect to directions from Minister of
  Finance
• to establish or close holding accounts and other
  types of accounts
• to buy or sell units or enter into agreements to
  buy or sell units
• record agents to conduct the above activities
• to record NZs initial assigned amount, issue
  RMUs or ERUs, transfer units to retirement or
  cancellation accounts and carry over units
• provide information on units held, acquired,
  transferred, retired, cancelled and carried over
• provide reports (e.g. to the Secretariat)

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The Registrar (2)

• is responsible for ensuring that Registry is
  maintained
• may refuse access to Registry due to technical
  difficulties
• assigns a unique account number/serial number to
  units
• may not transfer units if that would cause total
  of units in all accounts in Registry to fall
  below commitment period reserve
• may correct any inaccuracy in register, and must
  notify affected persons, registries and
  independent transaction log

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Unit Register

• Crown (NZ Govt) only to hold accounts in Registry
• All transactions must be registered
• Registrar sends record of proposed transaction to
  the independent transaction log and any other
  relevant registry
• if no discrepancies, transaction recorded in unit
  register, notification sent to the independent
  transaction log and other relevant registries and
  verification statement sent to the Minister of
  Finance
• if discrepancy, the Registrar may not register
  the transaction, must terminate it and give
  notification of the termination to the
  independent transaction log and other relevant
  registries and the Minister of Finance
• Transactions take effect once registered

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Unit Register (2)

• Open at all times for searches
• Copies of any part of register are available to
  any person upon request
• No liability on Crown or Registrar for any
  inaccuracy in search
• Article 6 project information?
• No specific confidentiality provisions included
• Official Information Act (OIA) applies
• Information held by NZ Govt agencies is subject
  to the OIA
• The OIA requires all information held by a
  Government agencies to be released, unless there
  are good reasons to withhold it

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Inclusion of legal entities

• Currently only Government can hold accounts
• Domestic issues for providing entity accounts
  include
• ability to open accounts and hold/transact units
• legal definition of units
• ability to raise a mortgage or use as security
• Government policy/approval for cancellation/carry-
  over
• policy on treatment of transactions where
  international limits apply (e.g. commitment
  period reserve)
• offences and penalties
• more emphasis electronic procedures and forms for
  requests

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Future Process

• Planning for implementation by 2005 after entry
  into force
• Next steps in process
• UNFCCC decisions on technical standards in 2002
• regulations and forms in 2003/04
• detailed planning for registry development
  2003/04
• software design/development 2004/05?