Government shifts to ETS go-slow
The next phase of the emissions trading scheme will be slowed. Smith says it needs to weigh the on business and households in difficult economic times.
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The government will slow the phasing in of the next stage of the emissions trading scheme (ETS).
Climate Change Issues Minister Nick Smith said New Zealand needed to carefully balance the impact of the scheme's costs on businesses and households in difficult economic times.
The scheme currently steps up on January 1, 2013 to a full obligation for the transport, electricity and industrial sectors, Dr Smith said.
It was the government's intention to now phase this in through three equal steps on January 1, 2013, January 1, 2014 and January 1, 2015 as recommended by the ETS Review Panel, he said.
“This approach slows the cost impacts on households and businesses but continues the progress needed to drive investment in renewable energy, clean technologies and forestry.”
It also allowed for Transtasman linkages from 2015, Dr Smith said.
National’s policy also included introducing offsetting from January 1, 2013, he said.
“This will enable pre-1990 forest owners to change land use providing they plant an equivalent area of new forest elsewhere.”
It was not in New Zealand's interest to include agricultural emissions in the ETS yet, he said.
“The lack of any practical and real technologies to reduce agricultural emissions means it would only impose a cost or tax on our most important export industry.”
“National will review its position in 2014 and only include agriculture if new technologies are available and more progress is made internationally on reducing greenhouse gas emissions.”
The overall change package would be fiscally neutral, Dr Smith said.
“Our objective is to reduce our greenhouse gas emissions at the least cost possible and for New Zealand to do its fair share on the global issue of climate change.”
Colin Williscroft
Wed, 09 Nov 2011
Wed, 09 Nov 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Government shifts to ETS go-slow
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