Sensible findings in Castalia report

Media release
November 5, 2007

Sensible findings in Castalia report

Business NZ acknowledges the Castalia report as another useful contribution to the emissions trading debate.

The report, released today, concludes that the government’s proposed emissions trading scheme is high risk and needs more work to protect the New Zealand economy and to ensure it delivers long-term environmental objectives.

It questions many of the core assumptions behind the scheme’s design and identifies substantial risks from rushing to expose the entire economy to a high and potentially volatile international carbon price.

The Castalia report is close on the heels of the New Zealand Institute report recommending New Zealand become a “fast follower” rather than a leader in emissions trading.

Business NZ chief executive Phil O’Reilly says it’s the second time in two weeks the Government has heard these warnings from a well respected organisation.

“Both reports ask serious questions about its strategy to lead the world on climate change and we share many of their concerns about the speed with which it is moving to set up such a comprehensive emissions trading system.

“Government really needs to be listening and considering the modifications suggested for the trading system if it is to avoid unnecessary harm to our economy,” he says.

“Most New Zealand businesses will be supportive of a more measured and sustainable approach to emissions reduction and so will our communities.”

ENDS

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