NZ polluters to pay full C02 emissions price from 2019
Emitters are now on their way to paying the full cost of their carbon emissions in New Zealand, Climate Change Minister Paula Bennett announced today.
The initial 50 per cent unit cost increased to 67 per cent from 1 January, and will rise to 83 per cent from 1 January 2018. All sectors in the ETS will pay the full market price from 1 January 2019.
“As part of our ongoing work programme to reduce domestic emissions we have started the three-year phase out of the one-for-two emissions trading scheme subsidy,” says Mrs Bennett.
The one-for-two subsidy had allowed some businesses to pay one emissions unit for every two tonnes of pollution they emit. Last year the Government announced its intention to phase the measure out over three years to give businesses time to plan and adjust.
“It is vital for businesses that we have certainty in our long-term response to climate change. Following the second stage of the ETS review this year we will set a clear long-term direction on how the ETS will help meet our ambitious emissions reduction targets,” said Mrs Bennett.
Other measures deployed to meet New Zealand’s Paris Agreement targets include reforestation, agricultural emissions reduction, and climate change adaptation measures.
“We’re also investing $2 billion on public transport, setting targets to increase the number of electric vehicles year on year until 2021, investing $20 million a year in agricultural greenhouse gas research and providing $200 million for international climate-related support”, said Mrs Bennett.
Recommendations from the second stage of the ETS review are expected in mid-2017 when the review is scheduled to conclude.