Report recommends ETS slow-down
The ETS Review Panel's report recommends putting on hold plans to have the energy, transport and industrial sectors fully obligated under the scheme by 2013.
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A new report has recommended the government slow down implementing the emissions trading scheme (ETS)
The ETS Review Panel's report, released today by Climate Change Issues Minister Nick Smith, recommends putting on hold plans to have the energy, transport and industrial sectors fully obligated under the scheme by 2013.
Instead, the panel has recommended extending that goal by phasing it in over three steps, in 2013, 2014 and 2015 to ease the impact of the scheme on businesses and households.
Dr Smith said if the government adopted that recommendation, it would save businesses and households about $1 a year during the phase-in period, at a cost to the government of about $500,000.
That cost related to a drop in government revenue that had already been included on the government's books, he said.
The report also recommended a more gradual introduction of agriculture into the scheme, rather than introduce it in 2015.
“The government does not support the introduction of agriculture into the ETS before 2015,” Dr Smith said.
“Agricultural emissions will only be included if practical technologies are available to enable farmers to reduce their emissions and more progress is made by our trading partners on measures to reduce emissions.”
Dr Smith said the government would consider the contents of the report before it made its position public before the election on November 26.
Any changes to the current scheme required legislation, which would not happen before the election, he said.
With that in mind, an ETS amendment bill was likely to go before Parliament next year.
Colin Williscroft
Thu, 15 Sep 2011
Thu, 15 Sep 2011
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Report recommends ETS slow-down
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