The Greenhouse Policy Coalition has just released a study on the impacts of the Government's proposed emissions trading regime. It suggests that we are taking more risks than any other country or group that has introduced such a scheme.
Executive director of Castalia, Alex Sundakov, said the NZ government seemed to be taking a riskier approach to introducing a price on carbon than any other country, including the EU.
“The European Union is prepared to contemplate 100% free allocation to shield its trade exposed energy intensive industry from competitors in countries not facing emissions trading costs. The New Zealand scheme is more ambitious in terms of coverage than any other in the world and has no provision for new investment or growth without a carbon penalty.”
Alex Sundakov said it was critical that a New Zealand emissions trading scheme allowed our efficient industries to remain internationally competitive.
“At the very least a price safety valve is required and better protection for trade exposed industry and new entrants, until such time that our trade competitors impose similar costs on their economies.”
Why would the New Zealand Government be prepared to take such risks? Has this policy been properly thought through? Why can't we work with Australia on a joint policy?
