Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Carbon price rules a lost opportunity for forest owners


8 December 2013


Carbon price rules a lost opportunity for forest owners


The government has clarified what units will be permitted in the Emissions Trading Scheme (ETS) from 2015, but this does nothing to stimulate action to reduce the nation’s net greenhouse gas emissions, says the Forest Owners Association.

“In making the announcement on Friday, acting climate change minister Simon Bridges said he wanted to bring certainty to participants in the ETS. But overhanging the market is the ability of the government to auction NZUs to stimulate supply,” says association vice-president Peter Clark.

“Since the government has given no indication of the NZU price at which auctioning would be used, both emitters and foresters have been left uncertain and unwilling to take action. This is deeply concerning for anyone who understands the economic and environmental potential of forestry. Without a meaningful carbon price, new planting will remain at extremely low levels and deforestation on land with dairying potential will continue apace.”

Mr Clark says participants will be able to continue to use dodgy cheap international credits to meet their emissions obligations until June 2015 when NZ units will be the only ones permitted, with supply controlled by auctioning.

“Ever since this government took office forest owners have been asking for a government commitment to a carbon floor price to match the current ceiling price and for the removal of the one-for-two taxpayer subsidy for emitters. We and other participants need to know that the government is committed to carbon prices being in a band that provides us with an incentive to invest in carbon reduction.”

Less than a month ago iwi leaders met with the prime minister to ask for the ETS to be strengthened. They asked for a carbon price mechanism that better balances the interests of emitters with those who have the ability to invest in measures to reduce emissions. The Forest Owners Association wrote to the prime minister in support of the iwi submissions.

“We said a higher carbon price will lead to increased forest planting. This would give greater security of supply to domestic processors, increase primary sector diversification and resilience to adverse economic and environment events,” says Mr Clark.

“Given that the maximum price has already been passed on to consumers by power companies and fuel suppliers, a meaningful floor price is unlikely to have a significant impact on costs to household consumers.”

He says a higher carbon price is not a subsidy for forest owners, because any credits they earn are met with an equal liability at harvest. Also, income from carbon would help offset the risks which deter farmers and others from investing in forestry.

“Forestry is a more profitable land use and contributes more to the economy than hill country sheep and cattle farming, but in the current economic and regulatory climate no-one is willing to commit to an investment where you have to wait 30 or more years before you get a return. A clear indication of the band in which the government would permit NZUs to trade in via auction would provide the certainty that all participants need to base investment decisions on.”

[ends]

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home.

To the US, drones are a legitimate response to the threat posed by the al Qaeda organisation and its franchisees... To the US, the drones carry the added advantage of not putting US troops at risk on the ground, and minimises the need for putting them in large numbers in bases in the countries concerned, always a politically sensitive point.

The counter-argument, well articulated by security analyst Paul Buchanan on RNZ this morning, is that this particular drone attack can be said to amount to an extra-judicial execution of a New Zealand citizen by one of our military allies, in circumstances where the person concerned posed no threat to New Zealand’s domestic security. More>>

 

Parliament Today:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Select Committees: Tobacco Plain Packaging Hearings

The Stroke Foundation is today backing the Cancer Society and Smokefree Coalition who are making oral submissions to the Health Select Committee in support of proposed legislation to remove of all branding from tobacco products. More>>

ALSO:

Milk: Oravida Asked For Cabinet Help

New evidence released by New Zealand First today reveals Justice Minister Judith Collins used her position to manipulate the Government to help her husband’s company, Oravida, after the Fonterra botulism scare, says New Zealand First Leader Rt Hon Winston Peters. More>>

ALSO:

With Conditions: Ruataniwha Consents Approved In Draft Decision

The Tukituki Catchment Proposal Board of Inquiry has granted 17 resource consents relating to the $265 million Ruataniwha Water Storage Scheme in a draft decision that would open more of the Hawke’s Bay to irrigation. More>>

ALSO:

Fast Lanes, Campervans: Labour 'Making The Holidays Easier For Kiwi Drivers'

The next Labour Government will make the holidays easier and journeys quicker for Kiwi families driving on the roads, says Labour Leader David Cunliffe. More>>

ALSO:

Gordon Campbell: On Royalty And Its Tourism Spin-Offs

Ultimately the Queen’s longevity has been one of her most significant accomplishments. A transition to Prince Charles while the monarchy was in the pits of public esteem in the mid to late 1990s would have been disastrous for the Royal Firm. Far more congenial representatives have now emerged... More>>

ALSO:

Privacy (Again): ACC Demands Excessive Privacy Waivers

Labour: “This is just another example of ACC under National deliberately acting to deny treatment and compensation... Those who did fill in the form have effectively been victims of yet another ACC privacy breach. This time Judith Collins knew it was happening..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news