Hon David Parker
5/12/2007
The proposed New Zealand Emissions Trading
Scheme is an "impressive piece of policy
development" and will form a significant
part of New Zealand’s contribution to tackling
climate change, according to an independent
report released by Climate Change Minister
David Parker today.
Legislation to establish the Emissions Trading
Scheme was introduced to Parliament yesterday,
in the form of the Climate Change (Emissions
Trading and Renewable Preference) Bill.
The review of the Emissions Trading Scheme
was commissioned by the government and undertaken
by internationally-recognised consultant Dr
Suzi Kerr, from the Wellington-based Motu
Economic and Public Policy Research consultancy.
It calls the design of Emissions Trading
Scheme an "impressive piece of policy
development" which builds on lessons
learned from existing emissions trading systems.
The Motu Report also says the robust design
of the scheme will enable New Zealand to make
credible commitments in international negotiations
setting new greenhouse gas emission reduction
targets for the period after 2012.
Dr Kerr’s review identified several areas
needing further work, including:
The prevention of environmental leakage –
which could occur in the event of New Zealand
companies reducing production to lower emissions
only for companies from countries with no
emissions trading scheme to increase their
production and emissions
The transition to an emissions trading scheme
and how companies will be assisted
How to ensure that the Emissions Trading
Scheme is flexible enough to reflect changes
and improvements in the scientific methodology
of measuring greenhouse gas emissions.
Mr Parker welcomed the assessment: "The
Motu Report joins other independent assessments,
including from overseas, which have endorsed
the overall design. The positive reception
the Emissions Trading Scheme is receiving
reflects not only the care with which it was
developed, but also widespread public acknowledgement
that action to reduce emissions and make us
more sustainable is necessary.
"We will continue to work with business,
industry, community groups and Maori on key
issues such as allocation, and further engagement
will occur over the next year before these
issues are settled."
David Parker said the scheme will be an important
tool in New Zealand’s contribution to tackling
an international problem.
"The world must act on climate change,
and New Zealand must contribute to the response."
See attached report by Motu Economic and
Public Policy Research consultancy.
