Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

BUDGET 2016: Industry’s ETS subsidy axed

BUDGET 2016: Industry’s ETS subsidy axed; $25 a tonne carbon cap remains

By Pattrick Smellie

May 26 (BusinessDesk) - Electricity producers, transport fuel providers and industries with high carbon emissions will lose access to the subsidy that requires them to offset only half their emissions, Climate Change Minister Paula Bennett announced in the Budget.

Major emitters who don’t face export competition are currently subject to a ‘one-for-two’ subsidy scheme over the next three years, with a benefit to the government in avoided costs of $356 million over the next four years, assuming carbon valued at $12 a tonne.

The subsidy elimination was widely anticipated. Bennett also announced there will be no change to the upper limit for the price of New Zealand Units of carbon of $25 a tonne.

“We looked at it closely but think that $25 is fair and reasonable,” Bennett told BusinessDesk. “Certainly, at around that 14 to 15 dollar mark we’re going to be growing a lot of trees and forestry starts stepping in.”

The government had no intention of further reviewing the ETS, beyond the current examination of a variety of technical aspects of its operations, within the next two years, she said.

NZUs have been trading above $14 a tonne in recent weeks, with plantation forestry incentivised to begin planting once the price gets to between $15 and $18 a tonne.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.