The cap also provides much greater certainty about future emissions within the ETS and will enable Governments to issue a supply of emissions units consistent with the climate change targets that we have put in place. Having provided this certainty, we can then ask the question of how best to allocate units within the ETS. There are typically two ways of allocating units: auction them or give them away for free. What we see most often in schemes around the world is some combination of the two, and that is what we now have here in Aotearoa New Zealand.