New Zealand’s power sector carbon emissions have inched downward for the third year in a row due to higher use of wind and geothermal energy sources. 2011 carbon emissions from industry were 1.9 per cent lower than 2010 emissions, according to the business ministry. New Zealand’s power sector generated 74 per cent of its electricity from renewable sources in 2010.
The country emits less than 0.2 per cent of global greenhouse gas emissions and was one of the first nations to implement a cap-and-trade carbon policy, which restricts the amount of carbon companies can emit - but allows them to offset unavoidable emissions by buying carbon credits. New Zealand’s domestic carbon credits are more expensive than the UN-backed carbon credits sold on the European Union emissions trading system, leading some groups to lobby for restrictions on the amount of UN credits allowed. For the time being, New Zealand is allowing unlimited purchases of UN credits.
New Zealand has plans to link its carbon market to Australia’s new system after 2015, but Australia also has plans to link to the EU ETS. The government is treading carefully before committing to links with the much bigger markets, and is focusing on New Zealand’s economic recovery from two major earthquakes in the city of Christchurch.
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