Govt chooses right direction on climate change

Government chooses right direction on climate change

The Government's decision to put a price on greenhouse gas emissions and create a market which will reward those cutting pollution is the right path.

The New Zealand Business Council for Sustainable Development, whose 60 members' annual sales equate to 34% of gross domestic product, says the Government has created a framework with a real chance of helping New Zealand overcome what has been called the world's largest market failure – climate change.

Business Council chair Nick Main, also chairman of Deloitte, says the emissions trading scheme (ETS) framework outlined today seems to have taken into account every major recommendation the Business Council made in its policy submissions, including:

• Introducing an emissions trading system over time, to retain sectors' international competitive advantages, while covering every sector and every gas • Transferring emissions credits and liabilities to post 1990 forestry owners, providing the right incentives without granting a Kyoto credit property right • Allowing the New Zealand trading system to link to international trading • More agricultural research investment • Forestry planting incentives • Funding to facilitate business innovation.

"We welcome the package. There's definite movement in the right direction. There also looks like there will be political consensus around it with multi party support. That makes the policy and time tabling. That's good for forward planning by business," Mr Main says. "No-one has an excuse to get off the bus."

There could be some room to negotiate earlier entry to the ETS by some sectors.

Mr Main says while it's an important policy package for business, the public is also keen to do something, from planting trees, to buying the right vehicles and light bulbs.

"The Government should have a programme to let people and their families play their part."

Mr Main says the Business Council has agreed to work with the Government to help determine policy detail to implement the new trading framework.

The Business Council tomorrow hosts a meeting of 160 business leaders to discuss emissions trading and climate change policy detail with the Ministers of Finance, Climate Change, Forestry and Associate Transport. The 7.30am- 10.30am meeting at the Sky City Convention Centre will give business, including several major sector leaders, an extended opportunity to questions Ministers on policy detail and proposed direction. Business Council ShapeNZ research on what New Zealanders want in climate change policy is at http://www.nzbcsd.org.nz/project.asp?ProjectID=37

ENDS

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