New Zealand Emissions Trading Legislation Select Committee Review

Majority Report from Select Committee on NZETS

 

The select committee majority report on the ETS was released late evening on the 31st August.

 

The recommendations are:

 

  • An emission trading scheme rather than a broad based carbon tax

 

  • Upstream points of obligation in fossil fuels and stationary energy

 

  • Certain industries to receive allocations based on an emissions intensity basis

 

  • Potential for a price cap on emissions units in the short term

 

  • Agriculture in the ETS at a date other than the present planned 2013

 

  • Direct regulation to be used alongside the ETS providing targeted response

 

  • Further research and development to find solutions to the emissions problem

 

In the forestry sector the deforestation liability will remain with the objective of negotiations in future commitment periods post 2012 to seek the ability to permit deforestation to a higher land use to be offset by corresponding reforestation at another location.

 

Alignment with the proposed Australian CPRS is also a priority by providing import and export rules to allow carbon permits to be transferred across the Tasman. Also having corresponding limits and price caps are seen as essential for the two systems to be aligned.

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