Russell McVeagh has been pleased to participate in Emissions Trading Scheme ("ETS") dialogue sessions facilitated over the last year by Motu, an independent economic and public policy think tank. The sessions brought together a diverse group of cross-sector experts to inform Motu's thinking about how New Zealand can cut its greenhouse emissions.
Off the back of the dialogue sessions, Motu this week released a report, An Effective NZ ETS: Clear Price Signals to Guide Low-Emission Investment which sets out a range of potential changes to improve New Zealand's ETS. With the Government currently reviewing the ETS, and in January beginning the phasing out of the one-for-two ETS subsidy, we look forward to further debate and involvement in this important area for New Zealand.
The release of Motu's report coincides with the Government announcing a range of Climate Change initiatives in the recent Budget, including:
(a) $6.4 million for the implementation and operation of the New Zealand Emissions Trading Scheme. The Government said that this is "intended to achieve the efficient and effective administration of the New Zealand Emissions Trading Scheme and the operation of the New Zealand Emissions Unit Register to ensure that the allocation and trading of emissions units are recorded accurately and in a timely manner".
(b) $681 million for the granting of New Zealand units to sectors of the New Zealand economy based on $25 per carbon unit.
(c) $13 million for policy advice in relation to "the domestic and international climate change programmes, contributions to international programmes and the administration of a national carbon analysis system".
Other Budget announcements can be found here.