123ADesignated limit

#### 123A Designated limit General rule—units other than listed units (1) The regulations may declare that: (a) eligible international emissions units (other than listed units) included in a specified class of eligible international emissions units are subject to a designated limit for: (i) a specified eligible financial year; and (ii) each later eligible financial year; and (b) a specified percentage is the designated limit percentage applicable to that designated limit. > Note: For listed unit, see subsection (8). (2) Each designated limit must be identified in the regulations by a unique name. (3) The specified eligible financial year must not be earlier than the eligible financial year beginning on 1 July 2015. (4) The specified eligible financial year must be later than the second eligible financial year after the eligible financial year in which the regulations are registered under the Legislative Instruments Act 2003. (5) However, if the Minister is satisfied that it is appropriate to do so in order to give effect to: (a) an international agreement; or (b) an international arrangement (within the meaning of the Australian National Registry of Emissions Units Act 2011); or (c) an amendment of such an agreement or arrangement; or (d) the termination of such an agreement or arrangement; the specified eligible financial year may be the eligible financial year next following the eligible financial year in which the regulations are registered under the Legislative Instruments Act 2003. Special rule—listed units (6) The following provisions have effect: (a) eligible international emissions units that are listed units are subject to a designated limit for: (i) the eligible financial year beginning on 1 July 2015; and (ii) each later eligible financial year; and (b) the designated limit percentage applicable to that designated limit for the eligible financial year concerned is: (i) 12.5%; or (ii) if the eligible financial year begins on or after 1 July 2020, and the regulations specify another percentage for that year—that other percentage; and (c) that designated limit is to be known as the listed unit designated limit. (7) A percentage must not be specified for an eligible financial year in regulations made for the purposes of subparagraph (6)(b)(ii) unless the eligible financial year is later than the eligible financial year in which the regulations are registered under the Legislative Instruments Act 2003. Listed unit (8) For the purposes of this section, listed unit means: (a) a Kyoto unit; or (b) an eligible international emissions unit included in a class of eligible international emissions units specified in the regulations. (9) Regulations made for the purposes of paragraph (8)(b) must not specify either of the following classes of units: (a) European allowance units; (b) Australian‑issued international units that were issued in relation to European allowance units. Regulations (10) In making a recommendation to the Governor‑General about regulations to be made for the purposes of this section, the Minister must have regard to any relevant report given to the Minister by the Climate Change Authority under Part 22. (11) In making a recommendation to the Governor‑General about regulations to be made for the purposes of this section, the Minister may have regard to: (a) Australia’s international objectives; and (b) Australia’s international obligations (including obligations under international climate change agreements); and (c) the environmental integrity of this Act and the associated provisions; and (d) the extent to which eligible international emissions units may be surrendered, accepted or used for the purposes of: (i) the Climate Change Response Act 2002 of New Zealand; or (ii) the European Union emissions trading scheme; and (e) the extent to which the regulations would facilitate linking of the scheme embodied in this Act and the associated provisions with other emissions trading schemes; and (f) such other matters (if any) as the Minister considers relevant.