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


Emission trading reforms another step to meeting targets

Hon James Shaw
Minister for Climate Change

Emission trading reforms another step to meeting climate targets

The Emissions Trading Scheme (ETS) will finally start to cut New Zealand’s greenhouse gas pollution as it was originally intended to, because of changes announced today by the Minister for Climate Change, James Shaw.

The changes include a limit on the total emissions allowed within the ETS, rules to ensure emission prices are more predictable, and a provisional emissions budget for the 2021-2025 period.

“A reformed ETS will be one of New Zealand’s most efficient and cost-effective tools for reducing emissions and ensuring we leave behind a safe planet for our children and grandchildren.

“Our announcement today will give business and foresters the certainty they have been asking for – as well as reassuring New Zealanders that there is a clear pathway towards meeting our climate targets,” James Shaw said.

Today’s announcement sets out:
• The amendments the Government is making to the Climate Change Response (Emissions Trading Reform) Bill, which will better incentivise emissions reductions
• The changes that are necessary to make the ETS work as it should. These changes will be implemented through regulation once the Bill is law and include the cap on the total emissions allowed in the ETS, and rules for the auctioning of emission units
“We know that meeting New Zealand’s climate targets is a real challenge, but it is becoming more and more achievable because of the policies our Government is putting in place.

“An effective Emissions Trading Scheme is a key part of what needs to be done. Unfortunately the rules set by previous Governments left the scheme too weak to have any real impact on reducing our emissions.

“A good example of this is the fact that until now the ETS has been a cap and trade system without a cap. This has meant that emissions permitted under the scheme were, in effect, unlimited. I am delighted to say we are finally changing that.

“The changes I have announced today will better translate our emission reduction targets into a predictable emission price, which will incentivise our biggest polluters to invest in the transition to a clean, climate-friendly economy.

“As a complete package, these reforms take a big step towards a safer future. New Zealanders now know what our emissions limit is for the first half of this decade, and the contribution the ETS will make towards keeping us below that level.

“We have also put everything in place to make sure businesses covered by the ETS can play their part in tackling the climate crisis in fair and affordable way,” James Shaw said.

Further Information

The Emissions Trading Reform Bill will have its second reading later today. The rules announced today that will be enacted through regulation once the Bill has passed include:
• A provisional emission budget for the 2021-2025 period of 354 million tonnes of CO2 equivalent greenhouse gasses
• The Climate Change Commission will provide advice next year on future emissions budgets. They may also propose a revised emissions budget for the 2021-25 period that would supersede the provisional emissions budget announced today.
• A new cap on the ETS of 160 million tonnes of CO2 equivalent greenhouse gases over 2021-2025
• Price controls that will act as a backstop when auctioning is introduced – preventing prices going too low or too high
• Rules that govern auctioning to provide certainty on how auctions will be scheduled and run
The Supplementary Order Paper (proposed amendments to the Emissions Trading Reform Bill) published today will:
• Extend participants’ access to the Fixed Priced Option (the ETS’s de-facto price ceiling) to cover 2020 emissions, providing certainty about compliance costs
• Defer implementation of major forestry policies to January 2023 whilst ensuring foresters who register under the current announced settings are not disadvantaged
• Delay the introduction of penalties for small foresters
• Extend cover for surrender liabilities to foresters during temporary adverse events using stock change accounting, and introducing exceptions of the new penalties for small forest participants

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Todd Muller Needs To Own The Privacy Leak Scandal

Whenever a political scandal breaks, party leaders have two basic options. They can confess to being in boots and all, and try to brazen it out : nothing to see here, move on. This tended to be the John Key approach. Very hard to pull that off in this case, given that it involved violating the privacy of sick New Zealanders for party political gain.
The other option is to claim innocence of this terrible, no good, highly regrettable “error of judgement” and apologise profusely for the sins of others, while absolving your own good self of any responsibility. This has been Todd Muller’s chosen path.... More>>

Govt: Statement From Rt Hon Winston Peters

Deputy Prime Minister and New Zealand First Leader Rt Hon Winston Peters has announced he is taking a short stint of medical leave this week. More>>

Isolation: Government And Air NZ Agree To Manage Incoming Bookings

Bookings for seats on Air New Zealand flights into New Zealand will be managed in the short term to ensure the Government is able to safely place New Zealanders arriving home into a managed isolation or quarantine facility, says Housing Minister Megan ... More>>


Government: New Investment Creates Over 2000 Jobs To Clean Up Waterways

A package of 23 projects across the country will clean up waterways and deliver over 2000 jobs Prime Minister Jacinda Ardern and Environment Minister David Parker announced today. The $162 million dollar package will see 22 water clean-up projects ... More>>


Government: David Clark Resigns As Health Minister

The Prime Minister Jacinda Ardern has accepted David Clark’s resignation as Health Minister. More>>


Election 2020: Green Party Unveils Income Policy

The Green Party is today unveiling its Poverty Action Plan, which includes a Guaranteed Minimum Income to ensure people have enough to live with dignity. The scheme resets income support payments to ensure everyone not in full-time paid work gets at least ... More>>


Conservation: New Protection For Dolphins

Extensive new protections are being put in place as part of an updated plan to look after New Zealand’s native Hector’s and Māui dolphins, announced Minister of Fisheries Stuart Nash and Minister of Conservation Eugenie Sage today. More>>


Auckland: Water Consent Referred To Board Of Inquiry

Environment Minister David Parker has today “called in” Auckland’s application to the Waikato Regional Council to take an extra 200 million litres of water a day from the lower reaches of the Waikato River for Auckland drinking water and other municipal uses... More>>


Covid-19 Patient Info Leak: Hamish Walker - A Personal Statement And An Apology

I have spoken to National Party Leader Todd Muller and informed him that I passed to members of the media, by email, information containing Covid-19 patient details that was given to me by a source. I did this to expose the Government’s shortcomings ... More>>


PM: Labour Will Extend Loan Scheme 'lifeline' For Small Business

Labour has announced its plans to extend the Small Business Loan Cashflow Scheme and spend $162 million on a waterway clean-up package. More>>


Biosecurity: Winston Peters On EU Travel: 'We're Not Going To Compromise Our Country's Health'

Foreign Minister Winston Peters says New Zealanders who head to Europe on holiday should pay for their two weeks' hotel quarantine when they return. More>>

Economy: Infrastructure Investment To Create Jobs, Kick-Start COVID Rebuild

A new package of infrastructure investments will help kick-start the post-COVID rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand. Finance Minister Grant Robertson and Infrastructure Minister ... More>>


Covid-19: Isolation System To Be Beefed Up After Stress

A range of improvements are already underway to address issues identified in the rapid review of the Managed Isolation and Quarantine system released today, Housing Minister Megan Woods said. The review was commissioned just over a week ago to identify ... More>>


Election 2020: Parties Get Into Gear

ACT has today announced its list for the 2020 General Election. “The calibre and experience of our candidates will impress voters of every persuasion. We have candidates from all walks of life. People who have built their homes, families and businesses ... More>>






InfoPages News Channels