Jun 4, 2008

Government To Press Ahead With ETS?

Well she had the chance to delay things, but it seems from her speech in Auckland that the PM has no intention to improve further the emissions trading scheme legislation.

The effect of delaying implementation of the scheme would be to increase the proportion of the cost of emissions borne by the taxpayer. But I don’t think it is fair or sensible to expect the taxpayer to pick up the tab for New Zealand’s emissions indefinitely. That doesn’t create incentives to reduce emissions, or prepare New Zealand to compete in an increasingly carbon constrained global economy in future. Delay also deprives business of the certainty it needs to plan ahead.
That’s why our government doesn’t favour the calls from some to slow down implementation of the scheme, or to become a mere ‘fast follower’ on emissions trading. We believe there are far more gains from being a leader than being a follower. The emissions trading scheme has been well designed, and it is in line with similar schemes either already in place or under development around the world. The calls for delay are destructive of New Zealand’s ability to front foot the climate change challenge and meet our international commitments.
Nor does it make any sense to wait for Australia to catch up with us as they develop their emissions trading scheme. New Zealand officials are staying in close contact with Australian counterparts as both our countries develop their schemes. The two are very likely to be compatible, but obviously our first priority has to be to design a scheme which suits our needs, and not Australia's.

You can read the full speech here...