Hon Dr Nick Smith

Minister for Climate Change Issues

12 November 2009
Media Statement

Govt welcomes report on ETS costs

A report on the amended Emissions Trading Scheme released today by the Sustainability Council shows the changes will more than half the costs for Kiwi households and businesses, Minister for Climate Change Issues Nick Smith says.

“I welcome this report as it confirms the Government’s proposed amendments to the ETS will halve the costs to households and businesses in the first three years,” Dr Smith said.

“Some media have interpreted the report today that households will pay more under the amended ETS. This couldn’t be further from the truth as the Sustainability Council’s report shows.

“The report states the cost to households to the end of the Kyoto Protocol in December 2012 would be $1.498 billion a year under Labour’s scheme and $637 million a year under National’s amended ETS. This is a significant reduction and will reduce the costs on New Zealand families.

“The report also confirms Government concerns that while forestry is currently offsetting our significant increase in emissions the numbers become a lot more difficult in the 2020s. That is why the Government is focused on obtaining sensible rules under any new international climate change agreement on embedded carbon in wood products.

“The Sustainability Council’s report focuses on intergenerational wealth transfer while Treasury’s analysis has indicated that in 2030 there will be a $2 billion per year difference between the existing scheme and the amended scheme. This does not mean taxpayers will be faced with a deficit of $2 billion; it means the Government would only receive a $1 billion a year surplus rather than $3 billion under Labour’s scheme.

“The Government is revising the ETS to reduce the costs to households and the impact on jobs while ensuring New Zealand takes a responsible approach to the global problem of greenhouse gas pollution and climate change.”

Click for big version
Table from Sustainability Council Report

ENDS

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