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: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news