Absent these changes, we risk disrupting the emissions trading scheme's secondary market and hindering the ability of participants to manage compliance costs and long-term investment decisions. We would also risk exposing the Crown to a fiscal cost if units are sold for less than the prevailing secondary market price. To create a stable and credible framework for the sale and purchase of New Zealand units, both the primary and secondary markets need to operate in a way that is complementary, supporting stability, liquidity, price discovery, and transparency. This bill, in the introduction of a confidential reserve price below which no units can be sold at auction, will ensure that.