“Still hope”for emissions trading scheme – expert
“Still hope”for emissions trading scheme – energy expert
LawFuel - The Law Jobs and Legal NewsWire Businesses should continue to prepare for an emissions trading scheme following the election of a National Government, despite predictions of doom in the carbon market.
That’s according to Bryan Gundersen, energy and climate change expert and partner at Kensington Swan.
He says there have been reports that business deals and NZU trades were falling due to the announcement that the Climate Change Response (Emissions Trading) Amendment Act 2008 was to be sent back to select committee for a ‘complete review’.
“Businesses need not throw their hands up in horror – especially as many opportunities still exist, including those planning on buying and selling NZUs”.
“It is likely that all contracts for NZUs or other benefits expected under the NZ ETS were covered by specific clauses dealing with the situation where it was changed or even ceased to exist.
“And these clauses would cover the current situation,” says Mr Gundersen.
“In any case, a modified emissions trading scheme will still be the most likely outcome from the proposed select committee review.
“Any National government will likely follow the Australian lead which is to implement an emissions trading scheme across the Tasman by 2010.”
Mr Gundersen says it is important, even when uncertainty is thrown into the mix, for business to still look for the opportunities that exist.
“There are still many options for individuals and businesses, especially foresters who were looking to sell NZUs from their forests.
“These opportunities still reside in the emissions trading space as forest owners can sell call options to purchase NZUs which can be called on or let go once regulatory certainty is obtained, and buyers can trade them pending regulatory certainty.
“There are also opportunities in the voluntary-offset market” Mr Gundersen said.