Saturday, July 20, 2024

Climate Change Commission issues first ETS advice

Climate Change Minister James Shaw has welcomed recommendations from the Climate Change Commission (the Commission) on New Zealand’s Emissions Trading Scheme (ETS) settings.

“For the ETS to do its job and drive real emissions cuts, it’s vital we have the right settings in place to ensure a fair price for climate pollution,” said Minister Shaw.

“But we also need to make sure that cost does not fall on those of us least able to bear it. This Government is committed to a just transition that leaves no one behind.

“ETS settings are updated annually, but this is the first time the Commission’s independent, non-partisan advice will inform that process. This is due to the ETS reforms we made in the last term, and I want to thank the members of the Commission for their work.”

Under the ETS, businesses that emit carbon must surrender a carbon credit – or unit – for every tonne of pollution they emit.

“Thanks to the reforms made by this Government, businesses must first purchase their credits in regular auctions. It’s important to note that changing these settings does not directly set the price of a carbon credit. Rather, the settings create the scope within which the price of pollution is discovered,” the Minister said.

“Officials will now consider the recommendations and provide further advice. And we look forward to receiving more feedback during the public consultation phase, which is planned for September this year.

“The ETS is a critical part of our climate toolbox. Thanks to the changes made by this Government it is finally performing as it should be – generating $4.5 billion for more action. The work we are continuing to do will ensure it remains fit for purpose,” said Mr Shaw.

The Commission’s advice to the Government will be presented to the House later this morning and is now available on the Commission’s website.

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