Another step to meeting climate targets
RECENT CHANGES TO THE EMISSIONS TRADING SCHEME (ETS) by Minister for Climate Change, James Shaw, will finally start to cut NZ’s greenhouse gas pollution as was originally intended, he says.
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 NZ’s most efficient and cost-effective tools for reducing emissions and ensuring we leave behind a safe planet for our children and grandchildren,” says Mr Shaw.
The changes will better incentivise emissions reductions and will be implemented through regulation once the Bill is law and include a cap on the total emissions allowed in the ETS, and rules for the auctioning of emission units.
“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,” says Mr Shaw.
“The new changes 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. 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,” he adds.
Proposed amendments to the Emissions Trading Reform Bill include: • Deferring implementation of major forestry policies to January 2023 while ensuring foresters who register under the current announced settings are not disadvantaged.
• Delaying the introduction of penalties for small foresters.
• Extending 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.
NZL