Charles Chauvel
Energy spokesperson

17 June 2009 Media Statement
Labour welcomes NZIER/Infometrics report on emissions trading

Labour welcomes a long-awaited economic modelling of climate change policy options, recommending an emissions trading scheme (ETS) as the best climate change policy response, Climate Change Issues Spokesperson Charles Chauvel says

NZIER and Infometrics have produced a report that the Government released today. It recommends that, because an ETS can provide a price signal across the economy, and because it is likely that a broad-based trading scheme will be the cheapest way of meeting New Zealand’s post 2012 international climate change commitments, an ETS should be introduced.

The report finds that the concept of a ‘government pays' approach is flawed in that it does not send a price signal to emitters. It also concludes that a failure to introduce carbon pricing into the New Zealand economy could damage the country's credibility and capacity to engage in international negotiations.

Charles Chauvel says that he agrees with the logic of these last two recommendations.

“Clearly, polluters should bear the cost of their emissions. As the world moves closer and closer to a global carbon trading scheme, it is fundamentally unfair that the New Zealand taxpayer should continue to pay to subsidise polluters, as we are now.

“New Zealand cannot credibly continue to rely on the 100% pure brand overseas while our domestic climate change policies are in disarray, as they are now.”

Charles Chauvel said that Labour did not agree with all the recommendations of the report.

“For example, the suggestion that delaying the entry of the agricultural sector into an ETS pending further work is just not viable. Agriculture accounts for more than half our emissions and the sector cannot continue to avoid the cost of these.

“However, on balance, the major recommendations of the report appear sound, and Labour repeats its call for the Government to affirm its commitment to an ETS,” Charles Chauvel said.

ENDS

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