New Zealand is slowing down implementation of its emissions trading scheme (ETS) and has delayed indefinitely agriculture’s entry in it.
National’s environment spokesman Nick Smith says times are hard and he has to balance the impact of the ETS on households and businesses against the goal of a low-carbon economy.
The scheme was due to step up on January 1, 2013, to a full obligation for the transport, electricity and industrial sectors.
That’s being changed to a phased increase in three steps - January 1, 2013, and on the same date in 2014 and 2015.
Agriculture was to come under the scheme in 2015 but, Dr Smith says, that will be reviewed in 2014 and the sector will only be included if new technologies are available and more progress is made in reducing agricultural emissions.
Another change to the scheme will allow pre-1990 forest owners to change land use providing they plant an equivalent area of new forest elsewhere.
Under the ETS, sectors which produce greenhouse gas emissions have to pay for carbon credits.
Until full obligation, they get a percentage of free credits from the government.
Businesses which reduce their emissions can sell their credits, and those which increase their emissions have to buy them.
Agriculture has been a difficult issue for the government because farmers vigorously oppose being brought into the scheme at all.
They argue there isn’t much they can do to reduce methane emissions from cattle and obligations under the ETS would make them less competitive with other countries.
Dr Smith’s announcement coincided with the release by Prime Minister John Key of National’s environment policy.
Mr Key says if the government wins a second term it will continue to clean up rivers and lakes, plant more trees, generate more renewable energy and deliver better ocean management.
