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

 

Improvements to New Zealand’s Emissions Trading Scheme

Hon Julie Anne Genter

Acting Minister for Climate Change


12 DECEMBER 2018 MEDIA STATEMENT

PĀNUI PĀPĀHO

Government announces set of improvements to New Zealand’s Emissions Trading Scheme.

Acting Climate Change Minister Julie Anne Genter today announced the first of two planned tranches of improvements to the New Zealand Emissions Trading Scheme (NZ ETS) following recent public consultation.

These improvements, together with the second tranche of decisions, are expected to be introduced to Parliament next year as amendments to the Climate Change Response Act 2002, which is the legislation that established the ETS.

Acting Minister Julie Anne Genter says the ETS has a vital role to play in the transition to a low-emissions and climate-resilient Aotearoa New Zealand.

“These improvements will create a more effective ETS so it can help us meet our goals to reduce greenhouse gas emissions and plant one billion trees.”

“The most significant improvement is establishing a framework which will enable New Zealand’s emissions under the ETS to be capped in future. This would restrict the number of units supplied into the scheme, increasing the incentive to reduce emissions.

“Up until now, the ETS has been the only emissions trading scheme globally which doesn’t have a cap. The ability to set a cap will help New Zealand meet its international climate change targets, as well as any new domestic targets,” says Acting Minister Genter.

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.

As well as increasing the incentive to reduce emissions, Julie Anne Genter notes that the improvements focus on providing more certainty to scheme participants.

“Submitters to the recent ETS consultation told us that ETS settings needed to be more predictable so participants could confidently take further action to invest in low-emissions activities.

“We’re putting in place a predictable process to manage the cap over time. This will include annual announcements looking forward five years.

“Auctioning will be introduced into the ETS in a way that aligns the supply of units with New Zealand’s emission reduction targets. The cost containment reserve, operated through the auctioning mechanism, will replace the current price ceiling, or fixed price option (FPO), once it is ready.”

The cap will include setting the number of units to be auctioned and the settings for the new cost containment reserve.

Currently, market participants can choose to pay $25 for every tonne of emissions they emit instead of buying units from emissions unit holders.

Julie Anne Genter has made it clear that the improvements do not affect the fixed price option and noted that, “The fixed price option for surrenders due in 2019 will continue to remain at $25 in order to maintain regulatory predictability.”

“We want the ETS reforms to be well-managed and well-signalled and this means keeping the FPO in place while those reforms go through,” she says.

The Government will also investigate the potential introduction of a price floor in the scheme.

“We heard from submitters that having a price floor in the ETS might encourage investment to reduce emissions, so we are going to investigate this option further,” says Ms Genter.

“No decision has been made as to when the ETS will be reopened to international units but, at this stage, they would not be a first choice.

“If, in future, the Government decided to allow international units, we would ensure that the units were of high environmental integrity,” Acting Minister Genter says.

“We’re confident that these changes provide an important balance between predictability for market participants, and flexibility for the Government to manage the ETS so that it supports our emissions reduction targets,” Ms Genter says.

Other key changes being announced today which will improve the effectiveness of the ETS include setting up an infringement offence regime for low-level offending against the ETS rules, and taking steps to improve market governance.

Throughout August and September, the Ministry for the Environment, Ministry for Primary Industries, and Te Uru Rākau (Forestry New Zealand) consulted on proposed improvements to the ETS.

Just over 250 submissions were received from businesses and industry groups, iwi and Māori, community groups and individuals; the majority of which supported the Government’s proposals.

Copies of the submissions can be viewed at http://www.mfe.govt.nz/consultation/ets

Information about the forestry changes planned for the ETS can be found by visiting the Ministry for Primary Industries webpage https://www.mpi.govt.nz/funding-and-programmes/forestry/emissions-trading-scheme/


© Scoop Media

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



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... 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.