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

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

 

NZ And Australia Agree on linking their ETS


THE HON GREG COMBET AM MP
Minister for Climate Change and Energy Efficiency

HON TIM GROSER
Minister Responsible for International Climate Change Negotiations

MEDIA RELEASE

5 December 2011
AUSTRALIA AND NEW ZEALAND ADVANCE LINKING OF THEIR EMISSIONS TRADING SCHEMES

Australian Minister for Climate Change and Energy Efficiency, Greg Combet, and New Zealand Minister for International Climate Change Negotiations, Tim Groser, have welcomed progress on plans to link Australia’s and New Zealand’s emissions trading schemes.

The Ministers agreed that strengthening international carbon markets - including through linking the two emissions trading schemes - would unlock further efficiencies, and contribute to reducing pollution cost-effectively around the globe.

“Markets are the way to cut our emissions at least cost. That is why Australia is working with New Zealand to develop them domestically and internationally,” Mr Combet said.

The Ministers noted that emissions trading schemes are being introduced around the world, in parallel with the ongoing development of multilateral requirements, and discussions between countries with existing emissions trading schemes were valuable in promoting deeper, more liquid carbon markets.

“The broader, deeper, and more liquid carbon markets are, the more effectively they work, for the benefit of all countries,” Mr Groser said.

Today’s announcement followed a meeting in June between Prime Ministers Gillard and Key where they agreed to establish a senior officials group to work on arrangements to link the two countries’ emissions trading schemes. The Australia New Zealand Carbon Pricing Officials Group (CPOG) was then established to take that work forward. Ministers Combet and Groser have agreed terms of reference that will guide CPOG’s further detailed discussions on linking in 2012.

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.

Both Ministers said that discussions regarding linking between Australia and New Zealand had begun positively in 2011. Officials are identifying a number of areas where it would be important to work through efficient and practical ways of linking the two schemes. The Ministers noted that linking could commence in 2015, at the start of the flexible pricing period of Australia’s carbon pricing mechanism.

“This is another important aspect of the close economic cooperation that characterises the way our two countries do business. Trans-Tasman collaboration, particularly on the technical details of linking the two schemes, will be important in getting the best outcome for both countries,” he said.

The terms of reference for the Australia-New Zealand Carbon Pricing Officials Group are attached below.



Terms of reference for the Australia-New Zealand Carbon Pricing Officials Group

Context
On 20 June 2011, Prime Ministers Gillard and Key announced the establishment of a senior officials group to work on arrangements to link, at an appropriate time in the future, Australia’s Carbon Pricing Mechanism (CPM) and the New Zealand Emissions Trading Scheme (NZ ETS).

Scope
In considering the prospect of linking respective emissions trading schemes, the Australia-New Zealand Carbon Pricing Officials Group (CPOG) will:

a) Examine the mechanics of linking by:
i. scoping the different ways in which the two schemes could link
ii. identifying any areas of scheme design which might represent an impediment to linking, and where alignment might be necessary
iii. identifying timeframe options for linking.

b) Discuss potential for aligning other aspects of scheme design in the medium-term, including opportunities to reduce trans-Tasman transaction costs and competitiveness distortions.

c) Use the forum for cooperation, where deemed mutually-appropriate, in:
i. direct linking with additional jurisdictions
ii. development of international carbon markets more broadly.

d) Examine any other matters that respective Climate Change Ministers consider relevant.

Considerations
In examining the prospect of linking carbon pricing schemes, the group will need to consider:
• the potential benefits and costs for each country
• the respective sovereignty of the New Zealand and Australian governments, and the differences between their two economies
• the potential nature of any post-2012 international framework
• work undertaken by each country to link with schemes in other jurisdictions

Output
Overall, the officials group will provide advice to their respective Climate Change Ministers on specific options for direct linking of Australia’s and New Zealand’s Emissions Trading Schemes. This advice will include the possible timing for any linking arrangement to come into force and practical steps needed in each country to enact it.

Timing
Officials will work through 2012 to consider costs and benefits of potential linking options and undertake a work program to support, subject to final decisions by respective Governments, a potential start date of 1 July 2015, once Australia moves to a flexible price mechanism.

Membership
The officials group is to be jointly chaired by the Australian Department of Climate Change and Energy Efficiency (DCCEE) and the New Zealand Ministry for the Environment (MfE). Attendance by other departments is on an as needs basis.

The work is primarily expected to be undertaken by officials from DCCEE and MfE, with officials reporting to their respective Climate Change Ministers.

________________________________________


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

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.