Adrift: What future does the Emissions Trading Scheme have?
The Commissioner has released a new report examining the future of New Zealand's Emissions Trading Scheme (NZ ETS).
Adrift: What future does the Emissions Trading Scheme have? traces the evolution of the NZ ETS, explores significant risks emerging from its current design, and considers the choices facing decision-makers if the NZ ETS is to more effectively contribute to emissions reduction goals.
The report finds that the NZ ETS will not achieve our climate goals. The NZ ETS has reached a critical turning point and major reform is needed.
“Forestry still has an important role to play in New Zealand’s climate policy. The question is not whether forestry has a role – it is whether that role should continue to be delivered through the NZ ETS."
The Commissioner calls for a comprehensive review of the NZ ETS to:
- foster cross-party and public discussion about the future direction of climate policy and the outcomes New Zealand expects the ETS to deliver
- reconsider the role of forestry within the scheme and explore opportunities for encouraging forestry outside the ETS.
He also recommends some immediate changes aimed at “freezing” the situation to buy breathing space to discuss the problem, and to develop, agree upon and implement workable solutions.
The report acknowledges that decisions about the future of the NZ ETS will have implications for farmers, foresters, Māori landowners, businesses, rural communities and future governments. Any change will need to be carefully considered.