Greenhouse gas units to go
New Zealand may exclude a unit type associated with greenhouse gases from our Emissions Trading Scheme.
New Zealand may exclude a unit type associated with greenhouse gases from our Emissions Trading Scheme.
The government today released a discussion document proposing to exclude specific types of international Kyoto units generated from the destruction of industrial gases from the New Zealand Emissions Trading Scheme.
Climate Change Minister Nick Smith said the ETS review panel recommended the government should urgently consider whether HFC Certified Emission Reduction Units should be ineligible in the New Zealand Emissions Trading Scheme
Both Australia and the European Union proposing prohibitions of these units. This discussion paper proposes New Zealand also not allow these particular types of units either, effective from July 1 in 2012 or 2013.
“The Government wants to maintain the integrity of the New Zealand Emissions Trading Scheme. There are legitimate questions about these types of international units. While very few were used in the first surrender period this year, we need to be conscious of changes in the international market and risks into the future.“
The concern about these Kyoto units is that they are generated by the destruction of powerful greenhouse gases like HFC-23 and N2O. The high value for destroying these gases creates an incentive for developing countries to manufacture more of them, bringing any environmental gains into question.
“The Government is also very conscious of New Zealand being a small market and, if we are alone in accepting these units, our market may be flooded or it may limit our capacity to link with other schemes. “
A decision on whether these units will be excluded from the NZ ETS will be made after consultation closes on 31 October 2011.
The discussion document is available here.
Charlotte Woodfield
Fri, 30 Sep 2011
Fri, 30 Sep 2011
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Greenhouse gas units to go
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