Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Govt moves against dodgy carbon credits

Govt moves against dodgy carbon credits

Nov. 13 (BusinessDesk) - International carbon credits based on large-scale hydro-electricity projects and hydro-fluorocarbon destruction schemes in developing countries will no longer be accepted in the New Zealand emissions trading scheme, if government recommendations are implemented.

Climate Change Minister Tim Groser announced a two week consultation from Nov. 19 on whether to ban Emission Reduction Units from HFC-23 and N20 destruction projects and Certified Emission Reduction units and ERU's associated with hydro projects.

The move is a sop to opponents of the government's amendments to the ETS, passed into last week, which entrench transitional and concessionary arrangements for major emitters and the agricultural sector for as long as there remains no significant global agreement on climate change action.

Unlike other countries with ETS-style arrangements, New Zealand imposes no restriction on the number of carbon credits that can be sourced offshore to offset local carbon emission obligations. That has given New Zealand emitters access to carbon credits at less than $2 a tonne in recent weeks.

The ETS was implemented with a $25 a tonne cap to protect emitters if carbon prices went higher than that, but such low prices were not contemplated at the time of its introduction. Other countries implement restrictions of up to 50 percent on the local use of foreign-sourced credits to bolster domestic carbon prices and encourage investment in carbon-mitigating technology.

Groser said the likely exclusion of the two types of credits named was intended to protect the integrity of the ETS. They could face a ban from other January or June next year. CER units associated with hydro-fluorocarbon destruction have already been banned from the New Zealand scheme after evidence emerged of facilities being established in developing countries to create the substances which could then be destroyed to collect subsidies.

Meanwhile, a decision to "backload" 900 million European Union Allowance credits may lead to some strengthening in global carbon prices. The decision by administrators of the European Union ETS effectively withdraws units from trade in 2013 for reinjection into the market in 2019. The move is intended to help deal with the glut of European carbon credits which is depressing prices worldwide.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news