Emissions trading scheme a big step forward

MEDIA RELEASE

21 September 2007

Emissions trading scheme a big step forward

Victoria University environmental studies and policy academics say the Government’s Emissions Trading Scheme is an important step forward in the fight against climate change.

Professor Jonathan Boston and Associate Professor Ralph Chapman say the proposed trading scheme will be valuable in introducing a price on emissions in a comprehensive way across the economy.

"It will provide a real incentive for businesses, households and, before too long, farmers, to cut emissions, and find innovative alternatives to burning fossil fuels,” Associate Professor Chapman says.

“We would have liked to see the agricultural sector coming into the scheme earlier than five years out. Nevertheless, what is critical is that the farming sector is in, and that farmers know that they will face a price on emissions before too long, and they should start planning for that now.

"There is still some flexibility in the arrangements for 2013, and we would like to see some strong signals to the farming sector that they will not be allocated a lot of free emission units at that point. There is a considerable amount they can do to cut emissions, especially the greenhouse gas nitrous oxide."

Professor Jonathan Boston says the proposal sends an important message to the international community.

“Action to reduce greenhouse gas emissions is becoming increasingly urgent and the emissions trading scheme, together with measures such as research and development support for methane abatement and the new renewable energy target, are very positive actions. New Zealand is likely to be seen, with this announcement, as making a meaningful contribution to the global push to take effective action to tackle the threat of dangerous climate change.”

New Zealand is committed under the Kyoto Protocol to stabilising greenhouse gas emissions by 2012, either by cutting emissions or by buying carbon credits on the international market.

“This package will help New Zealand be in a position, in a few years’ time, where it does not have to buy so many expensive credits on the international market,” Associate Professor Chapman says. He has been critical of officials’ earlier advice to rely on purchasing emission reductions abroad.

He says every year counts in fighting climate change. “Climate change represents a critical challenge for the world community. This package may well turn out not to be enough – we are likely to have to plan on even bigger emission reductions in future. Nevertheless, it is a very welcome step forward on this challenging issue.”

ENDS

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