Training
This section covers important information relevant to registration, lodging collateral, bidding, paying invoices and auction rules. You'll also find some additional helpful resources in this section.
FAQ
Registration
Q: How long does it take to fully register to be an Auction Participant?
A: The registration process for ETS Auctions requires the Auction Operators to validate the statutory declaration and bank details provided. If all required information is provided and there is no issue with validating your information, registration can be completed in 1 business day.
Q: Do all users need to complete an identity check?
A: Only the Auction Account Holder will need to complete the registration process and provide the Statutory Declaration. However, all invited users will need to complete an identity check with either a New Zealand driver licence or a passport.
Q: Can I participate in ETS Auctions if I am not currently in New Zealand?
A: Yes, you can participate in auctions as long as you have a New Zealand Emissions Trading Register account and have completed the registration process for ETS auctions. ETS Auctions are operated fully online.
Q: How can I update my Participant details?
A: You can update your Participant details anytime. If you need to update your bank account details, please contact us at auctions@nzx.com or (+64) 4 470 9768.
If you need to update your information (excluding the bank account details), please contact the NZ ETS Register first at emissionstrading@epa.govt.nz to update your Registry account information. Afterwards, contact us at auctions@nzx.com or (+64) 4 470 9768 to update your information accordingly.
Q: How can I update the Auction Account Holder?
A: To update the Auction Account Holder, please update your participant account details in EPA Register with the new Auction Account Holder and invite the new user as an admin. Once completed, please contact us at auctions@nzx.com or (+64) 4 470 9768 with the new Auction Account Holder’s EPA invite code and a new signed statutory declaration. The Auction Operator will then be able to update your Auction Account Holder.
Q: Can I participate in an auction without a Registry account?
A: No, you must have an account with the New Zealand Emissions Trading Register to participate in ETS Auctions.
Collateral and Payment
Q: Can I request to have my collateral returned before an auction starts if I don’t want to participate anymore?
A: Yes, however no collateral transactions are allowed from five days before the auction through to four days after. If you are outside this restricted period, please contact us at auctions@nzx.com or (+64) 4 470 9768.
Q: Can I use an international bank account?
A: Yes, however all payments must be made in New Zealand dollars. Funding collateral and any collateral return must be made from the bank account used during the registration process.
Q: Can I pay my invoice by making several transfers to the ETS Auction Collateral Account?
A: One or multiple transfers to the ETS Auction Settlement Account would be acceptable payment. Note, all the deposits need to be received before 12:00 NZ time four business days after the auction.
Q: Will my money be returned if I overpay the invoice?
A: Yes, overpayments will be returned as soon as possible.
Q: Who is the counter party for the ETS auction?
A: The Ministry for the Environment
Bidding and Auction Results
Q: What browsers are supported for bidding?
A: The latest two versions of Google Chrome, Microsoft Edge, Mozilla Firefox, and Safari (for Mac OS) are the supported browsers. Please note, Internet Explorer is not supported by ETS Auctions. ETS Auctions work best on a laptop or desktop, it is not optimised for mobile phones or tablet devices.
Q: Can I appoint multiple bidders to bid on my behalf?
A: Yes, by inviting new users as bidders you can appoint multiple bidders to bid on your behalf. Learn more about inviting users
Q: What is the minimum bid that I can make?
A: The minimum bid size is 500 NZUs (New Zealand Units) or 5 lots (1 lot = 100 NZUs). You can only place bids that are in 100 NZU or 1 lot increments. For example, a bid of 500 NZUs or 5 lots is acceptable. However, a bid of 550 NZUs or 5.5 lots is not acceptable.
Q: How and when can I know my bidding results?
A: You will receive an email notification with the auction results on the auction day. You can view your auction results in further detail on your Participant page under ‘Past auctions’.
Q: When will I receive my NZUs?
A: After settlement (12pm, four business days after the auction), the Auction Operator will provide the EPA Register with NZU transfer instructions for all fully paid invoices. These transfer instructions will be validated by the Ministry for the Environment before the EPA Register can transfer the units.
If you have not received your NZUs 7 business days after the auction, please contact the Auction Operator at auctions@nzx.com or (+64) 4 470 9768 and the EPA Register at emissionstrading@epa.govt.nz.
Q: Is it possible for an auction to sell some but not all of the units available for auction?
A: Yes. Following an auction, a partial clearance may occur when total bid volume is less than the total number of units available (including any rollover units but excluding any cost containment reserve units) AND the lowest bid price is equal to or greater than the CRP. After a partial clearance, unsold units will rollover to the next auction (in the same calendar year only).
Auction Price Controls
Q: What is the Confidential Reserve Price?
A: The Confidential Reserve Price (CRP) is one of two minimum price controls (the other being the price floor). If after the auction closes the interim clearing price is less than the CRP, the auction is declined, and no units are sold. All unsold units will be rolled over to the next auction (in the same calendar year only).
Q: How is the CRP different from the price floor?
A: The price floor is a minimum price limit set as part of the government’s annual updates to NZ ETS unit limits and price control settings. The price floor reflects the government’s view of an unacceptably low NZU price below what is needed for meeting emissions budgets. Any bids submitted below the price floor will be rejected by the auction platform. The price floor does not act as a hard floor as secondary markets can trade below it. The government however will not release more units into the market, at auction, below the price floor.
Q: What is the CRP’s purpose?
A: The CRP is there to ensure auction clearing prices do not unduly disrupt the secondary market price.
Q: Who sets the CRP methodology and who calculates it?
A: The Minister of Climate Change sets the methodology in consultation with the Minister of Finance and the Auction Monitor. Under regulation 15C of the Climate Change (Auctions, Limits, and Price Controls for Units) Regulations 2020) the Auction Operator must calculate the CRP for each auction.
Q: What must the methodology include? Understanding that the specifics of the methodology are confidential.
A: Under regulation 15A(2), when setting the methodology for calculating the CRP, the Minister of Climate Change must:
- Determine a representative price for New Zealand units sold on secondary markets recently before the auction, taking into account any volatility in prices; and
- Determine a price below the representative price that will achieve the purpose of the confidential reserve price.
Q: Does the CRP methodology ever change or get reviewed?
A: Under regulation 15B the Minister of Climate Change must review the CRP after a declined auction.
Q: Can the CRP ever be above recent market prices?
A: No. Regulations require the CRP to be set at a level below recent market prices (refer to regulation 15A (2)(c)).
Q: Can the CRP ever be below the price floor?
A: No. Bids below the price floor are not permitted in NZ ETS Auctions. In the event the CRP is calculated below the price floor, the price floor becomes the minimum clearing price (refer to regulation 15A(1)).