Working in tandem, these mechanisms will help to stop the price of emissions getting either too low or too high. They'll work like this: if, when an auction takes place, the clearing price for units is higher than $50, the cost containment reserve will be triggered. At this point, an additional number of NZUs will be made available to help moderate the price. The price floor complements this by ensuring that unit prices at auction do not drop below $20 in 2021. This will help to manage the risk of emissions prices falling for the wrong reasons, thereby undermining investment. It is between the price floor and the cost containment reserve, between the lowest price an emissions unit can drop to and the highest it can reach before it triggers the cost containment reserve, where the ETS auctions will now operate. 