Emissions Trading Scheme (ETS) must proceed
The Emissions Trading Scheme (ETS) must proceed, as it is an essential system for New Zealand to adjust to a
carbon-constrained future and live up to our clean green image, says Dr Jan Wright, Parliamentary Commissioner for the
Environment.
An independent Officer of Parliament, Dr Wright was commenting today on the release of her office’s review of the
Cawthron Institute’s Report on the ETS.
“Putting a price on carbon is an essential tool for reducing greenhouse gas emissions,” says Dr Wright. “A price on
carbon puts the cost of emitting greenhouse gases directly into every monetary transaction.
“That’s great penetration into every production and consumption decision. Low carbon goods and services will become
relatively cheaper; high carbon goods and services will become relatively more expensive.”
Dr Wright says much of the current comment about the ETS relates to the inevitable jockeying for advantage of special
interest groups at the outset of a ‘cap and trade’ system. “We saw the same kinds of behaviour when the fishing quota
system was introduced,” she says.
“There are some genuine dilemmas here, such as the issue of production shifting to countries without a price on carbon.
But extending support for exporters and delaying entry of the transport sector mean that New Zealand will be slower to
start adjusting to a carbon-constrained world.
“We should not forget the principle at the core of the emissions trading scheme of ‘polluter pays’,” says Dr Wright.
“’Polluter pays’ is actually a variant of ‘user pays’; we are using the atmosphere as a dumping ground for waste gases.”
In terms of its environmental impacts outlined in the Cawthron Report, the ETS is likely to have both positive and
negative effects on the environment. “But I make the point that any greenhouse mitigation policy response would have
similar effects on the local environment.
“The threat to high value biodiversity from incentivising the planting of exotic forests for carbon storage does need
attention, but should not delay the implementation of the emissions trading scheme or require major modifications of the
proposed legislation.
Dr Wright recently recommended to the Local Government and Environment Committee that the Biofuel Bill should not
proceed. “My view of the ETS Bill is very different”, she says. “The ETS Bill should proceed. The most important thing
is to get the ETS framework in place – there is no reason to delay.”
ENDS