Hon Dr Nick Smith
Minister for Climate Change Issues
24 February 2011

Media Statement

Minister for Climate Change Issues Nick Smith today welcomed the announcement by Australian Prime Minister Julia Gillard that Australia is to put a price on carbon from 1 July 2012.

“Today’s announcement confirms Australia will introduce a fixed carbon price under the structure of an emissions trading scheme to reduce greenhouse gases,” Dr Smith said.

“This proposed market-based mechanism will be very similar to New Zealand’s ETS. It will include all six greenhouse gases under the Kyoto Protocol and will apply to the electricity, stationary energy, transport and industrial process sectors of the economy – with the exception of agriculture. It also includes a fixed price transitioning to a market in the future.

“The New Zealand Government will keep a close eye on progress to price carbon across the Tasman. Late last year the New Zealand Government announced the establishment of a panel to review our ETS requiring it to give careful consideration to progress made on climate change by our closest trading partners, including Australia. This development will impact on the review although important details are yet to be finalised with the Australian scheme.

“The New Zealand and Australian economies are closely integrated and it makes good sense for us to work closely together on climate change and carbon emission pricing. Today’s development in Australia reinforces the close working relationship our governments have on this global challenge.”

ENDS

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