New Zealand Celsias

Today officially marks the launch of the Emissions Trading Scheme (ETS) in New Zealand, with the entry of transport fuels, electricity and industry. 

On the eve of the schemes commencement and, in the face of a barrage of criticism, Climate Change Minister Nick Smith issued a statement saying the launch of the ETS is an important step in NewZealand doing its fair share on climate change. 

 “New Zealand’s emissions per person are among the highest in the world and are growing at one of the fastest rates among developed countries,” says Smith. “The ETS is the most efficient and least cost way to bring emissions under control, meet our international obligations and protect New Zealand’s clean, green brand.

“The ETS means those who emit carbon dioxide into the atmosphere from a vehicle, power station or factory will pay $12.50 per tonne from tomorrow. Those who plant trees and absorb CO2 receive $25 per tonne.

“The benefits of the ETS are that it will drive investment in renewable electricity, forestry and energy efficiency and reduce New Zealand’s emissions by 19 million tonnes by 2012.

“The Government has been mindful of the cost impact on households and businesses, particularly through recessionary times. The changes we made last year halved the power price impact from 10 percent to 5 percent and the cost of petrol and diesel from 7 cents to 3.5 cents/litre. The total cost for the average New Zealand household is $3.17 a week or $165 a year,” says Smith.

Not that the Greens are buying into that argument. Coinciding with Smith’s statement, Green Party MP Russel Norman issued his own statement on the Green Party website saying the Government’s policies in transport, electricity and energy efficiency undermine the goals of reducing greenhouse gas emissions by limiting climate-friendly choices to consumers. 

“The New Zealand Transport Agency recently introduced a new policy that has resulted in bus and train fare hikes, making it harder for commuters to reduce car use.

“In addition, John Key’s Government has wasted tax payer money on pet motorways, rather than investing in smart, climate-friendly options like better buses and trains, or improving walking and cycling,” says Norman.

“This means many people still have little choice but to take the car to work, even though petrol will be more expensive.”

Last week it was the ACT party, together with Federated Farmers, who expressed their disappointment with the ETS by protesting on parliament steps.

At the protest, ACT climate change spokesman John Boscawen expressed concern at the increased prices in petrol and electricity, saying the increases would flow through the economy “virtually increasing the price of everything”.

With all of this somewhat inevitable criticism, the Government has maintained that the implementation and progress of the ETS scheme will be monitored.

“It is important New Zealand does its fair share on climate change but we don’t want to get out of step with the rest of the world. That is why there will be a review of the ETS next year, and at regular intervals thereafter, so we can reassess our approach relative to international progress and the latest science,” says Smith. 

Love it or hate it, you need to know about the ETS and how it will impact you. The Climate Change Information website is a good starting point.

Also check out previous ETS articles on Celsias:

Venturing to the ETS: Tips from Venture Southland

Forestry players shed a different light on ETS

Warm-up Canterbury

ACTing out against the ETS

Got Q's about the ETS? Ask Nick Smith yourself

Cool reaction to ETS-related power hike

Rural lobby black about ETS sheep costs

Questions over carbon market supply

Cool reaction to ETS-related power hike

 Image: Flickr - alison.mckellar