The Climate Action and Low Carbon Development (Amendment) Act 2021 provides that carbon budgets will be prepared and updated every five years. It will be the responsibility of the Minister for the Environment, Climate and Communication to prepare, within the limits of the carbon budget, the maximum amount of greenhouse gas emissions that are permitted in different sectors of the economy during a budget period. These are referred to in the Act as a ‘sectoral emissions ceiling’ and different ceilings may apply to different sectors.
The sectors of the economy to which each sectoral emissions ceiling shall apply shall be determined from time to time by the Government. The Minister shall, when preparing a sectoral emissions ceiling, consult with such Ministers of the Government as he or she considers appropriate. The Minister shall, as soon as may be after a carbon budget takes effect under section 6B, finalise and submit each sectoral emissions ceiling to the Government for approval.