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Any confidence in the emissions trading scheme?

Is there confidence in the emissions trading scheme?

Legislation to set up an Emissions Trading Scheme introduced today contains an unnecessary sting in the tail, according to Business NZ.

The Climate Change (Emissions Trading and Renewable Preference) Bill includes a 10-year ban on almost all new fossil fuel generation.

Business NZ Chief Executive Phil O’Reilly says the whole point of having an emissions trading scheme is to put a price on carbon, thereby discouraging the use of fossil fuels.

“So why should the law to set up an emissions trading scheme also include a ban on fossil fuel generation? It looks as if we don’t have confidence that the emissions trading scheme will work.

“After a lot of debate, New Zealanders have swung their weight behind the idea of an emissions trading scheme, being a market-based solution rather than a heavy-handed ban.

“Now it appears that we are about to have the ban as well.

“A better approach would simply be to go with the emissions trading scheme, and assess its success before deciding on any further action.

“New Zealanders should make their preferences known on this when they respond during the consultation period on the Bill,” Mr O’Reilly said.

ENDS

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