Reforming the New Zealand Emissions Trading Scheme
The government has released the provisional emissions budget, as well as the cap and price controls for the New Zealand Emissions Trading Scheme, boosting the scheme’s ability to help New Zealand reach its climate change targets.
Minister for Climate Change, James Shaw says “this will give business and foresters the certainty they have been asking for – as well as reassuring New Zealanders that there is a clear pathway towards meeting our climate targets.”
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.
The announcement sets out:
- The amendments the Government is making to the Climate Change Response (Emissions Trading Reform) Bill, which will better incentivise emissions reductions
- The changes that are necessary to make the ETS work as it should. These changes will be implemented through regulation once the Bill is law and include the cap on the total emissions allowed in the ETS, and rules for the auctioning of emission units