Changes to the Emissions Trading Scheme (ETS) announced today need to be carefully implemented to avoid unnecessary
economic damage, according to the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
The changes include a new emissions cap and a new upper limit on the price of carbon.
"We support the ETS as our main policy tool for responding to climate change, and the drive to lower emissions," says
PEPANZ CEO John Carnegie.
"The reform process has been well signalled and consulted on so far, but the challenge ahead will be avoiding damage to
jobs and exports for little environmental gain.
"As always, New Zealand will need to carefully calibrate with what our trading partners are doing. If we act in
isolation too fast, we could see industries close shop here and move to other countries with less strict rules.
"We would hate to see major export industries impacted in this way, especially as we rebuild our economy from the
impacts of COVID-19."