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Groser welcomes assurance on access to Kyoto Carbon Markets

Hon Tim Groser
Minister for Climate Change Issues

11 December 2012
Media Statement

Groser welcomes assurance on access to Kyoto Carbon Markets

Minister for Climate Change Issues Tim Groser has welcomed the assurance of the Environmental Protection Authority (EPA) regarding future access to existing Kyoto carbon markets after 1 January 2013.

“There has been significant ill-informed commentary regarding the impact of the decisions made in Doha regarding access to Kyoto carbon markets from 1 January 2013 which is causing unnecessary concern for many participants in the New Zealand Emissions Trading Scheme.

“The issue is a technical one relating to how the rules will apply. I am grateful to the EPA for clarifying the situation with respect to the period 2013 – 2015,” says Mr Groser.

New Zealand businesses can continue to access existing Kyoto carbon markets from 1 January 2013 until the conclusion of the Kyoto Protocol First Commitment Period (CP1) in 2015.

The agreement reached in Doha limiting trading access to Kyoto carbon markets during the Kyoto Protocol Second Commitment Period (CP2) to developed countries taking their commitment under the Kyoto Protocol will not restrict access by New Zealand businesses during this period.

The Government is reviewing a number of trading options for the balance of the period through to 2020 when the new comprehensive international agreement will become operational. It is also continuing with the development programme for the auctioning of New Zealand units.

“It is inconceivable that a long term agreement which much encompass all major emitters can be finalised without a robust market instrument,” says Mr Groser.

EPA Statement on Access to Kyoto carbon markets from 1 January 2013 can be found at: http://www.epa.govt.nz/news/erma-media-releases/Pages/Access%20to%20Kyoto%20carbon%20markets.aspx

Further information can be found on the Emissions Unit Registry website: http://www.eur.govt.nz/

ENDS

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