farming

The Government recently released its framework for a New Zealand greenhouse gas Emissions Trading Scheme (ETS). The proposed scheme include all sectors and all greenhouse gases, although their entry times into the scheme vary. It puts a price on carbon across the economy, but it does not set a cap on emissions within New Zealand — there is no limit on the extent to which emissions reductions, and emissions offsets, can be purchased overseas.

By itself, the scheme is unlikely to produce major emissions reductions, unless the international price of carbon is substantially higher than projected. It will need a suite of complementary measures to drive real reductions in our emissions profile.

Despite this, the ETS has already come under sustained attack by representatives of the major greenhouse gas emitters, such as heavy industry and agriculture. They want the introduction of the scheme delayed, and its absolute emissions reductions targets replaced by “intensity targets”.