Now, it is necessary to note that this is different to a price floor. The price floor supports long-term investment decision-making by setting a level below which the price of a New Zealand unit will never fall. The confidential reserve price, on the other hand, is set for each auction to ensure units are sold at a price that reflects the prevailing market activity. Put simply, if the clearing price were to fall below the confidential reserve price, units would not be sold in that auction. The bill will ensure that this does not jeopardise the predictability of units to be auctioned, because if the reserve price is triggered, unsold units will be rolled over automatically into a later auction. Instead, the reserve price would simply restrict the supply of units at a particular auction and support the stability of the secondary market price, which is where the bulk of ETS trades take place and where market forces combine to help determine the cost of pollution.