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


NZ And Australia Agree on linking their ETS

Minister for Climate Change and Energy Efficiency

Minister Responsible for International Climate Change Negotiations


5 December 2011

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.

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

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).

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.

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

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.

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.

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

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Politics Of Using The Word “Fascist”

“Fascist” is one of those labels with the ability to capsize any debate. Call your opponents “fascists” – or “agitators” or “terrorists” or “scum” and you’ve taken the option of mutual respect and compromise off the table. Interesting then to see the ( paywalled) Washington Post seriously debating with itself yesterday over whether… Hmm, is it now finally time to bring out the f-word in connection with the presidency of Donald J. Trump, and with his enablers in the Republican Party..? More>>


RNZ: Covid-19 rules and restrictions on businesses to be lifted under alert level 1

Prime Minister Jacinda Ardern says there will still be strict controls on the border, but all current rules and restrictions on businesses and services will be "essentially lifted" under alert level 1.
She said the lower alert level would also put an end to restrictions for hospitality businesses, and gatherings - including funerals and tangihanga - of any size could take place..... More>>


Gordon Campbell: On The Twitter Wars, And The Muller Muddles

Whatever the failings of our own politicians, spare a kind thought for the majority of Americans who did not vote for Donald Trump. Sure, it was depressing this week to watch Todd Muller clinging for dear life to his talking points on Q&A, ... More>>


Green Party: Statement On The Death Of George Floyd

“Today and every day we stand in solidarity with George Floyd’s family, friends and community who feel pain and fear about his untimely death at the hands of Minneapolis police”, said Green Party Co-leader and Māori Development spokesperson Marama ... More>>


Government: Freshwater Package Backed By Comprehensive Economic Analysis

Decisions on the Action for Healthy Waterways package are supported by comprehensive environmental and economic impact analysis by leading New Zealand research institutes, universities, and private sector firms. More>>


National: "Todd Muller Announces Shape Of Next Government"

National Party Leader Todd Muller has announced the line-up of the next Government. “New Zealand is facing perhaps the toughest time that almost anyone alive can remember. “We are borrowing tens of billions of dollars to get us through this crisis. There ... More>>


Gordon Campbell: On National’s Day Of Reckoning

Congratulations. You are one of the 55 members of the National caucus being called together tomorrow to choose who will lead you to either (a) catastrophic or (b) honourable defeat on September 19, thereby saving some (but not all) of the jobs currently on the line. Good luck. Your decision process starts NOW... More>>


Budget 2020: Jobs Budget To Get Economy Moving Again

Investments to both save and create jobs in Budget 2020 mean unemployment can be back to pre COVID-19 levels within two years and could see the economy growing again as early as next year. More>>


Government: Queen's Birthday Honours List 2020

The New Zealand Order of Merit The Queen has been pleased, on the occasion of the celebration of Her Majesty's Birthday, to make the following appointments to The New Zealand Order of Merit: DNZM To be Dames Companion of the said Order: Distinguished ... More>>

Government: Support For Arts And Music Sector Recovery

A jobseekers programme for the creative sector and four new funds have been set up by the Government to help our arts and music industry recover from the blow of COVID-19. Thousands of jobs will be supported through today’s $175 million package ... More>>


Government: New Zealand Joins Global Search For COVID-19 Vaccine

Foreign Affairs Minister Winston Peters, Research, Science and Innovation Minister Megan Woods, and Health Minister David Clark today announced a COVID-19 vaccine strategy, which will enable New Zealand scientists to contribute to global research efforts ... More>>


The Dig: Steady State Economics: We’ve Got Some (systems) Thinking To Do

In this time of impending economic and ecological crises, we urgently need to aim for a sustainable or ‘steady state’ economy. In order to get there, we will need to adopt a ‘systems-thinking’ outlook taking into account the interconnections of our complex world.

In short, we’ve got some systems thinking to do... More>>


Election 2020: Parties Get Into gear

The Green Party is pleased to reveal its candidate list for the upcoming election. With a mix of familiar faces and fresh new talent, this exceptional group of candidates are ready to lead the Greens back into Government. Using the most democratic list ... More>>


Insight Into Regenerative Agriculture In New Zealand

There is a fast growing movement in New Zealand that has been happening out in paddocks, fields, gardens and hill country across the nation. It is a movement that holds the promise to reshape our productive land use industries towards systems that work with the natural environment to regenerate the land. The movement is that of regenerative agriculture. More>>


Covid-19: Tracer App Released To Support Contact Tracing

The Ministry of Health has today formally released the NZ COVID Tracer app to support contact tracing in New Zealand. Kiwis who download the app will create a digital diary of the places they visit by scanning QR codes displayed at the entrances to ... More>>


Govt: Deep Concern At Hong Kong National Security Legislation
Foreign Affairs Minister Winston Peters today reiterated the deep concern of the New Zealand Government following confirmation by China’s National People’s Congress of national security legislation relating to Hong Kong.... More>>






InfoPages News Channels