The Ministry for the Environment has released 3 technical documents on removing the emissions trading scheme 1-for-2 transitional measure at various carbon prices, and managing the costs of removing that transitional measure.
Auckland Council has produced a draft submission on the Government proposals which will debated by the council’s Auckland development committee on Thursday.
Submissions for priority issues close with the ministry on Friday 19 February.
In the first report, the NZ Institute of Economic Research modelled the economic impact of removing the transitional measure, where emitters pay the cost of one unit for 2 tonnes of carbon dioxide.
Canterbury University’s School of Forestry produced the second report, outlining different ways the forestry sector might respond to various carbon prices.
The Ministry for the Environment produced the third report, with quality assurance by Martin Jenkins. It’s an evaluation of the scheme’s performance against its short-, medium- & long-term outcomes to develop a greater understanding of its impacts.
Climate Change Minister Paula Bennett said on Friday: “Following on from the Paris agreement on climate change, the Government is focusing on ensuring our domestic settings are in the right place to help New Zealand meet our 2030 target. The ETS is one of our most effective tools to tackle climate change domestically and we are keen to hear a broad range of views about its effectiveness & impact.”
Auckland Council’s proposed submission says the council is responsible for a region that produces 27% of New Zealand’s gross greenhouse gas emissions. It wants the agricultural sector included within the scheme’s scope “to remove an unfair cost burden on other sectors of the economy”. The council says this is the third review of the scheme in the 7 years since it was introduced, and the final form needs to provide certainty: “Ongoing changes weaken Auckland businesses’ ability to effectively plan for the future.”
The council’s answer is full submission from 2017, not one for 2, “so polluters take full responsibility for their emissions”.
The council has also linked this response to a review by the Electricity Authority on implications of evolving technologies for pricing of distribution services (consultation closes Monday 4 April). The council says the 2 consultation processes need to be co-ordinated, so outcomes sought by the Electricity Authority don’t undermine the objective of the emissions trading scheme review.
NZIER, Economic impacts
Forestry School, Afforestation responses
Ministry for the Environment, Evaluation report
Auckland Council committee agenda, proposed submission
Electricity Authority, consultation on default distribution agreement
Attribution: Ministerial release, ministry, council agenda