Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

The Projects Mechanism Q&As

The Projects Mechanism Questions and Answers

What is a Project?

A A Project is a specific activity that reduces greenhouse gas emissions in return for a Government incentive. An activity cannot be a Project unless it would be uneconomic without payment of an incentive. The incentives for the first round of Projects will be promissory notes for Kyoto Protocol emissions units (these units, often referred to as ‘carbon credits’, will be internationally tradeable when the Kyoto Protocol comes into force).

What part do Projects play in the Government’s climate change policy package?

A Projects are an important new policy together with the emissions charge planned from 2007 and Negotiated Greenhouse Agreements (NGAs) for firms whose competitiveness will be at risk from the charge. Projects are expected to play a key role, prior to the introduction of the emissions charge, as a tool to begin to reduce emissions.

When will Projects commence?

A The first round of the Projects mechanism (the ‘exploratory’ round) is planned for early in the June 2003/2004 financial year. It is expected that Projects rounds will be held at least annually thereafter.

What are the key differences between the model presented at the Projects workshop in late January and the final policy?

A The key differences identified are as follows: the size threshold for eligibility has been reduced from 100,000 tCO2 (equivalent) to 10,000 tCO2 (equivalent) over the first commitment period, reflecting concerns expressed at the workshop the core criterion for assessment has been simplified and clearly recognises pre-2008 abatement benefits the incentive for the exploratory round will be promissory notes for future delivery of emission units, but the use of a direct financial incentive will be considered for future rounds (for more details, please refer to ‘Projects Mechanism – Recent changes and further technical details’ on www.climatechange.govt.nz).

Treasury is leading further policy development to cover the nature of Projects agreements and promissory notes and the tax treatment of units and notes.

Who is responsible for the Projects mechanism and what are the key administrative functions?

A The New Zealand Climate Change Office is responsible for the Projects mechanism. There are several key elements involved: a programme management role that prepares material for and administers the round assessment by a panel independent from but supported by the programme manager. The panel will recommend the proposals that should be considered for support by a final decision maker a concluding agreements role, where the commitments of both parties are incorporated into a Projects agreement ongoing management of Projects agreements, which will be required before and during the first commitment period.

What arrangements are in place for the programme management role?

A The New Zealand Climate Change Office (NZCCO) is in the process of scoping the programme management function and is considering options for delivery. The NZCCO hopes to be able to announce who will undertake this role shortly and indicate a timetable for the exploratory round at the same time.

Who will assess the proposals?

A A panel independent from, but supported by, the programme manager will produce a list of recommended Projects. The final decision on these recommendations will be made by the Chief Executive of the Ministry for the Environment.

Are firms that are eligible for an NGA also eligible for Projects, and vice versa?

A The policy allows firms with an NGA to submit a Projects proposal (and vice versa), but a ‘no double dipping’ principle will apply. ‘No double dipping’ means that Projects incentives cannot be used to help meet an agreed NGA target. A firm in the process of concluding an NGA with the Government will not be eligible for a Project until the NGA is finalised. This is necessary to enable proper consideration of competitiveness-at-risk status for NGAs and to provide clarity about the NGA boundaries (i.e. what specific activities are covered by the NGA).

How are the proposals for the two wind farms, which the Government recently agreed to support, related to the Projects mechanism?

A The Government has been considering proposals from Meridian Energy Ltd and Trustpower for well over a year. It has agreed that the benefits to electricity security and to the development of a Projects mechanism justified proceeding with these proposals prior to the Projects exploratory round. The one million emission units potentially available to these two proposals has not influenced the quantity of units available for the Projects exploratory round.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election