How units are traded

PAGE LAST UPDATED: 28 Jun 2025

We support a closed market for regulated entities to trade their NVES units with each other through the NVES Unit Registry. There is no open market or ability to trade with a company or organisation that is not regulated under the New Vehicle Efficiency Standard Act 2024(Opens in a new tab/window) (NVES Act).

Entities set the value of a unit they trade or what they trade units for. We do not:

Set the price of a unit.
Ask entities to report what units are traded for.
Record what a unit is traded for.

Using units to remain compliant

Entities who have an interim emissions value (IEV) above zero who want to become compliant before their final emissions value (FEV) is issued may want to trade units from another entity to extinguish them against the relevant performance period they did not perform well in.

How to trade units

To make trades, an entity must appoint an authorised user that meets our integrity standards by completing a fit and proper person (FPP) test.

If entities want to trade units, their authorised users:

Can contact us to obtain a list of entities interested in trading.
Can contact each other to arrange the trade on whatever commercial terms they agree.
Must contact us with their instructions to transfer units.

We then review and action the trade according to our rules, unless there is a compelling reason not to do so.

You can watch this video to learn more about how units are traded between entities.

As the NVES Regulator, we manage and maintain a unit registry which is available for registration from September 2025.
It records units held by regulated entities, such as car manufacturers and suppliers.
The first units will be issued when entities receive their first interim emissions value, or IEV, from February 2026.
If an entity's IEV is below zero, they have beaten the target and will be issued units
If their IEV is zero, they are compliant
If their IEV is above zero, they have not met the target.
If an IEV is above zero, entities will have 2 years to act to reduce it to zero before the number becomes a final emissions value or FEV. If this happens they are liable to pay a penalty.
So, what are the penalties?
Penalties are issued through an infringement notice as soon as an FEV is determined.
If an entity doesn’t act within the 2 years, they may face a penalty equal to 50 Australian dollars per gram of CO2 they have missed the target by.
If penalties remain unpaid after the due date, legal action may follow, increasing the cost up to 100 Australian dollars per gram of CO2 they have missed the target by.
To avoid a penalty and comply entities can trade for units. Let’s dive into this.
If regulated entities want to reduce their IEV through the trade of units with other regulated entities, they can see who to approach through the NVES registry.
Units can only be traded with other entities in the NVES unit registry. There is no open market or ability to trade with a company outside the NVES.
Entities set the value of a unit they trade, or what they trade units for. We do not:
- set the price of a unit
- ask entities to report what units are traded for
- or, record what a unit is traded for.
To make trades, an entity must appoint an ‘authorised user’ that meets our integrity standards by completing a ‘fit and proper person’ test.
If 2 entities want to trade units, their authorised users must:
- contact each other and arrange the trade on whatever commercial terms they agree
- contact us with their instructions to transfer or receive units.
We then approve and action the trade according to the rules we publish, unless there is a compelling reason not to do so.
Entities can choose how they balance their IEV to remain compliant. They may:
- trade for units to reduce their IEV to zero for one year
- purchase them from another entity to balance their IEV in another
- sell units they already hold based on their business needs
- Or, hold on to units to plan ahead for a future year when they don’t perform as well.
Entities that have accrued positive unit balances have 3 years to extinguish their units before they expire.
Information on who holds a registry account, how many units they hold, and their IEV for each performance period will be published on our website.

Scenario

In February 2026 Crimson Motors receives an IEV of +51,471 for the 2025 performance period. Their IEV is above zero.

From 2026, Crimson Motors will have 2 years to balance their IEV to zero (for the 2025 performance period) if they do not want to incur a penalty. To do this they will need to earn units that they can extinguish. To get these units they can:

Negotiate with other entities to trade for units.
Sell more fuel-efficient vehicles over the next performance period to earn units.

Assuming Crimson Motors has not earned any units from selling more fuel-efficient vehicles, they will need to trade with another entity for units and extinguish those units before 31 December 2027. Otherwise, they will risk having a penalty in 2028.

Another company, Voltara Automotive have built a large balance of units available to trade.

They can trade these units for a negotiated price with other regulated entities on their own terms. If those units aren’t sold, they will expire after 3 years (in this case this will be February 2029). Voltara Automotive decide their best option in this scenario is to sell those units to an entity in the market.

Throughout the year, Crimson Motors and Voltara Automotive reach a commercial agreement.

Once negotiations are finalised, an authorised user from Voltara Automotive initiates the transaction to transfer 10,000 units to Crimson Motors in the NVES Unit Registry. Another authorised user from Voltara Automotive then authorises the transaction. The NVES Regulator will then receive the request to action the trade.

Once this happens, Crimson Motors requests those units to be extinguished by the NVES Regulator against their 2025 performance period. This reduces their FEV and penalty liability for 2025 by 10,000. Their new balance for 2025 is +41,471.

This is a fictional scenario and is not based on any real regulated entity.

Events & consultation