David
Parker2 May, 2008 - The overall message
from economic reports released this week
on the emissions trading scheme is that
it must be both fair and effective, Climate
Change Minister David Parker says.
“A number of reports
have been released in response to the emissions
trading scheme this week. All of them support
an emissions trading scheme, though some
of them take issue with the detail of the
design.
“The message from the
Climate Change Leadership Forum chaired
by Stephen Tindall is that the scheme is
properly designed and will work. The forum
highlights the need to consider again the
rate at which free allocation of emission
rights is phased out for exporters facing
competition from countries which have not
yet introduced emission pricing.
“The Infometrics review
released by the government finds that meeting
our Kyoto commitments will have a modest
economic impact, and that an emissions trading
scheme is an effective way of managing that
cost in the long term.
“A Cawthron Institute-led
report on the environmental impacts of the
ETS says the measures taken to reduce emissions
can generate positive co-benefits for air
and water quality, and land use. It confirms
the government’s view that at the same time
we need safeguards in place to protect biodiversity,
and land and water resources.”
“The report from NZIER
misses the point of an emissions trading
scheme. It recommends that taxpayers pay
the cost of our Kyoto commitments rather
than those that create the emissions. This
would create no incentive for businesses
to reduce their emissions, and is unfair
on the taxpayer. It would fail to achieve
the environmental objective of reducing
emissions.
“The Sustainability
Council report recommendation is the opposite
of the NZIER report,” David Parker said.
“It says the cost of the ETS should bite
big emitters harder and sooner. But it is
important that the transition to emission
pricing under the ETS is fair. Imposing
too high a cost on all sectors at the outset
would not be fair and would not bring about
the best global control in total emissions.
“All of these reports
are going to the select committee for consideration.
The Labour-led government is paying close
attention to the concerns expressed by stakeholders,
and we are open to making changes to the
emissions trading framework to accommodate
some of these, if the select committee recommends
it.”
