Nick Smith, Tim Groser
12 December, 2011
Climate Change Ministers Nick Smith and
Tim Groser have warmly welcomed the outcome
of the UN Climate Change negotiations which
concluded successfully in Durban today.
They paid tribute to the leadership provided
by the host, South Africa, which paved the
way for a truly comprehensive international
agreement.
“This agreement meets all the realistic
expectations the New Zealand delegation
had when it arrived in South Africa two
weeks ago,” Mr Groser said.
The agreement:
• Maintains the legal structure of the existing
Kyoto Protocol while improving rules in
the treatment of land use and forestry.
These changes have environmental integrity
and make more sense for New Zealand moving
forward;
• Reinforces commitments made in principle
by all major emitters at Cancun last year
for the period beyond 2012 to 2020 and thus
ensures a far more comprehensive international
approach to combating climate change than
the very partial coverage a Kyoto deal alone
would have secured. At the request of the
South African Government, Mr Groser facilitated
these negotiations;
• Crucially, foreshadows a single new international
agreement beyond 2020 (the "Durban
Platform") that will bring all major
emitters, developed and developing, within
a legally binding framework;
• Unlocked the way forward for the $100
billion Green Climate Fund designed to assist
developing countries meet the adaptation
and mitigation challenges they face.
Dr Smith noted that New Zealand has a robust
suite of climate change policies in place
centred around the ETS, described by the
OECD in its November 2011 Environmental
Outlook as the most developed and most comprehensive
trading scheme in the world.
“The Durban outcome is another clear sign
that more and more countries are coming
on board,” he said.
Both Ministers emphasized that there were
still important questions left unanswered.
The date for the next Kyoto commitments
still needed to be finalized; the negotiations
for the long term regime beyond 2020 would
be long and arduous; the Durban texts themselves,
which were deep and complex agreements put
together under great pressure, will unquestionably
contain problems and issues which cannot
be seen clearly at this stage.
“Most important, we, and no doubt Australia,
will each need to make a decision in coming
months whether to join Europe in inscribing
our next set of international commitments
within the framework of the Kyoto Protocol
or to join all the developing countries,
the United States, Canada, Japan, Russia
and others, in making those commitments
under the alternative transitional arrangements
described in different texts. It is not
a matter of whether we make commitments
- New Zealand will - but where they are
made and how ambitious we should be.
“Like all countries, we will need to take
account of our national circumstances and
compare our efforts to the efforts of others.
We want to do our fair share, but it will
not be clear for some time what exactly
others will be committing to,” the Ministers
said.
Mr Groser said New Zealand’s negotiating
team worked hand in glove with its Australian
counterparts, led by the Hon Greg Combet,
the Australian Minister for Climate Change.
“The cooperation at Durban will be matched
by cooperation in domestic policy development.
In particular, we will be exploring with
Australia how to link in a practical way
our two schemes, once the Australian scheme
switches to a trading scheme in 2015,” Dr
Smith said.
“We recognize that these developments, welcome
though they are, still leave many important
questions unanswered. We need to address
the recommendations of the review of the
New Zealand ETS chaired by the Hon David
Caygill. Internationally, there will still
be many concerned at the overall level of
ambition being less than required for an
adequate global response looking forward
to 2050.
“Equally, we can be certain that there will
be concerns, particularly in developing
countries that do not have well established
climate change policies, that the Durban
agreements may put too much adjustment pressures
on them. While these conflicting concerns
are legitimate, we can all move forward
with increasing confidence given this outcome,”
Mr Groser said.
+ More
Industrial gas units
banned from New Zealand’s ETS
Nick Smith
22 December, 2011
Climate Change Minister Nick Smith today
announced the Government is banning some
international emissions units from New Zealand’s
Emissions Trading Scheme (ETS).
"We are banning international units
generated from industrial gas destruction
projects involving HFC-23 and N2O because
we are concerned that they create perverse
incentives that may not benefit the environment.
This change is about ensuring the environmental
integrity of the New Zealand Emissions Trading
Scheme," said Dr Smith.
This decision arises from the 2011 Review
of the ETS that recommends that urgent consideration
be given to banning the units and a subsequent
discussion paper on the issue released in
October.
“Australia and the European Union have already
announced their intention to ban these industrial
gas CERs from their emission trading schemes.
It's important that New Zealand does the
same or we risk becoming a dumping ground
for units of questionable environmental
benefits," said Dr Smith.
"The Government is also cognisant of
the importance of market certainty. Units
already in the New Zealand ETS register
will be able to be used for meeting surrender
obligations. Emitters who have already committed
to purchase these types of units in forward
contracts will be able to use them for surrender
obligations until June 2013, providing contracts
were entered into prior to today.
“The ETS is the most important tool New
Zealand has to reduce emissions and meet
our international obligations on climate
change but it is complex and will require
ongoing refinement.
“We will be monitoring future developments
in the Clean Development Mechanism certification
process to ensure any units entering the
New Zealand scheme are consistent with its
purpose.
"These changes have been made by regulation
on Monday and take effect today. We are
also planning an ETS Amendment Bill in 2012
in response to the Review Panel's report
to ensure the scheme meets the Government's
overall goal of New Zealand doing its fair
share internationally on climate change
while minimising costs on households and
businesses," said Dr Smith.
