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Box 4.1 Commercial fishing: Quota Management System (QMS)
• The QMS regulates commercial fishing in New Zealand in order to ensure sustainable utilization of fisheries resources.

• 100 species are subject to the QMS, divided into 638 separate stocks defined by geographical areas. Each stock is divided into 100 million transferable quota shares.

• In the past, quota was allocated on the basis of catch history. Since 2010, quota shares for new stocks under the QMS are allocated through tender. Under the Maori Fisheries Act 2004, 20% of any new QMS stock is allocated to Maori.

• Total allowable catch (TAC) limits are set for each fish stock at the level that allows maximum sustainable yield (i.e. the greatest yield while maintaining a stock's productive capacity over time). After allowing for non commercial fishing and fishing-induced mortality of each stock, a total allowable commercial catch (TACC) is determined.

• Each quota share generates an annual catch entitlement (ACE), expressed in weight, within the TACC available for each stock. ACE can be traded during the fishing year.

• Fishers must balance their catches with their ACE at the end of each fishing year. If the catches exceed their annual ACE holdings, fishers must pay to the Crown a monetary amount (deemed value) determined by the Minister for Primary Industries. Deemed values are higher than the ACE price of the stock plus the costs of obtaining the ACE.

• A catch balancing mechanism and reporting requirements are in place to enforce the QMS.

The MPI (Ministry of Primary Industries) is responsible for the implementation of the Fisheries Act and the QMS (Quota Management System). A private entity, FishServe, operates some of the services required by the Act and relevant regulations (as either devolved or contracted services), such as maintaining the registers of all fishing quotas and ACE (annual catch entitlement) trades, vessel registration, high seas permits, aønd issuing commercial fishing permits that are required for undertaking fishing in New Zealand.

Currently, there are about 2,200 individuals and companies holding fishing quotas. The Fisheries Act 1996 provides for the setting of caps on the total number of quota shares of a particular stock that may be held by any single person or company (these caps do not apply to ownership of ACE (annual catch entitlement) so as to ensure the operational efficiency of fisheries). Nevertheless, the Minister for Primary Industries may consent to a higher limit for any entity that requests the extension prior to acquiring the quota shares that would be in excess of the prescribed limit. A number of companies have been granted such consent.

In 2013, oil made up 33% of New Zealand's total energy supply, followed by gas (22%), geothermal energy (20%), hydro (10%), other renewable sources (8%) and coal (7%). The overall contribution of renewable sources to total energy supply was 38%. Local production was responsible for 83% of the country's total energy supply. New Zealand is self-sufficient in all primary energy sources, except oil, of which it is a net-importer. On the other hand, it is a net exporter of coal and liquid petroleum gas (LPG). In 2013, the transport and industrial sectors accounted for 37% and 36% of energy demand, respectively.

In 2013, just over 75% of the electricity generated in New Zealand came from renewable sources, mainly hydropower (54.5% of all generation). [33] Gas contributed with 19.4% and coal with 5.3%. The industrial sector remained the largest consumer of electricity (38%), followed by the residential (32%), commercial (24%) and agricultural (6%) sectors.

[33] Other renewable sources were geothermal (14.5%), wind (4.8%), and bioenergy (1.4%).

The direction of energy policy is set out in the New Zealand Energy Strategy 2011-2021 and the New Zealand Energy Efficiency and Conservation Strategy 2011-2016 (NZEECS), both released in August 2011. The strategy focusses on four objectives: developing greater energy resources, including renewable and non-renewable; ensuring secure and affordable energy; making efficient use of energy; and maintaining an environmentally responsible approach to energy. New Zealand aims to generate 90% of its electricity from renewable energy sources by 2025, and to achieve a 50% reduction in its greenhouse gas emissions (from 1990 levels) by 2050. The NZEECS sets out specific policies and targets in six sectors to achieve the above objectives. The Energy Efficiency and Conservation Authority (EECA) is the government body responsible for improving energy efficiency by businesses and homes and fostering greater use of renewable energy.

Under New Zealand's Emissions Trading Scheme (NZETS) emitters of greenhouse gases must either reduce their emissions or buy New Zealand Units to pay for those emissions. Since 2012, the agricultural sector is required to report biological emissions (methane and nitrous oxide) that are produced on-farm. However, agriculture will have to surrender obligations in the ETS only if there are technologies available to reduce such emissions and international competitors take sufficient action on their own emissions. [21] The agricultural sector is responsible for almost half of New Zealand's greenhouse gas emissions. [22]

[21] Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012.
[22] Ministry of the Environment, New Zealand's Greenhouse Gas Inventory 1990-2010.

New Zealand Emissions Trading Scheme (NZETS), in place since 2008, is part of the overall energy strategy. After a first review in 2011, amendments to the NZETS were passed in 2012 with the purpose of reducing its cost impact on businesses and households, improving its operation and making it more flexible. Some transitional provisions were extended until the next review in 2015.

(...) Amendments to the Crown Minerals Act 1991 and the Minerals Programme for Petroleum and associated regulations came into force on 24 May 2013. A new streamlined permit regime was introduced to reduce the time required to obtain exploration permits for less complex and lower-risks projects, and improvements were made in the coordination between NZP&M (New Zealand Petroleum and Minerals) and the health, safety and environmental regulators in the allocation of permits.

Maritime New Zealand, a Crown entity, is responsible for developing and monitoring rules and standards for safety, security and environmental matters in maritime transport, under the Maritime Transport Act 1994. The entity is also responsible for implementing the Maritime Security Act 2004, administering the New Zealand Register of Ships and ensuring compliance with international maritime and marine environment protection conventions.