14 May 2012

Support for Changes to ETS for Synthetic Greenhouse Gases

The new vehicle industry welcomes the Government’s decision to replace with a levy, the Emissions Trading Scheme obligations for synthetic greenhouse gases.

“The Motor Industry Association, along with other industry associations, made submissions to the ETS Review Panel, pointing out the proposed cost of compliance associated with the importation of small quantities of synthetic greenhouse gases (contained in automotive air conditioning units) would be as high as 50% of the actual cost of carbon payable under the ETS. We suggested there were far simpler and more cost effective measures that could be adopted to counter the potential harmful effects of these gases,” said Mr Kerr, Chief Executive Officer of the Motor Industry Association.

“It was heartening to see today’s announcement by the Minister that the ETS obligations will be replaced by a levy payable at the time of registering a vehicle. This was the preferred option put forward by the industry being simple, transparent and one that would capture all vehicles. The MIA will now work with officials from the Ministry of Environment and Ministry of Transport to put this into place,” said Mr Kerr.

ENDS

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