Parliament

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

 

ETS one-for-two subsidy to be phased out

Hon Paula Bennett

Minister for Climate Change Issues

26 May 2016

ETS one-for-two subsidy to be phased out

The Government is phasing out a subsidy in the Emissions Trading Scheme that allows some businesses to pay one emissions unit for every two tonnes of pollution they emit, Climate Change Minister Paula Bennett says.

The one-for-two subsidy was a temporary measure introduced during the global financial crisis to help moderate the initial costs of the ETS while businesses were struggling.

“The subsidy will be phased out over three years to give businesses time to plan and adjust, to support a more stable market,” Mrs Bennett says.

“This is a significant step in helping New Zealand meet its ambitious target of reducing emissions to 30 per cent below 2005 levels by 2030. More importantly, it will support our efforts to grow a lower-emissions economy.”

The current 50 per cent unit cost will increase to 67 per cent from 1 January, then 83 per cent from 1 January 2018, with all sectors in the ETS paying the full market price from 1 January 2019. The current price ceiling which caps units at $25 will remain.

“It is time businesses move towards paying the market price of their emissions. Gradually removing the one-for-two measure is a pragmatic and practical way for them to manage the costs,” Mrs Bennett says.

Removing the subsidy will positively impact the operating balance by $356 million over the next four years, based on a New Zealand Unit price of $12.

Changes to the subsidy primarily affect ETS participants in the waste, transport, energy, electricity and industry sectors, and importers of goods containing synthetic greenhouse gases.

Businesses exposed to international trade competition, and whose emissions are a big part of their costs, will continue to receive an allocation of emissions units to protect their competitiveness.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching.

"There needs to be better investment in education so every child can reach their potential and we have enough teachers for every class", said NZEI Te Riu Roa lead principal negotiator Louise Green. More>>

 

Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>

ALSO:

Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>

ALSO:

Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>

ALSO:

Lesser Politicians: ACT Conference Promises Fewer Politicians

Party Leader David Seymour today revealed his Smaller Government Bill which will reduce the size of Parliament to 100 MPs, limit the size of the Executive to 20 Ministers, and remove the Maori seats. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages