Just 5 Companies’ Climate Pollution Equivalent To Over 2 Million Cars

Just 5 companies’ production processes create the same carbon emissions as nearly half the nation’s vehicle fleet, according to research released by Common Grace Aotearoa today, as the Don’t Subsidise Pollution campaign delivers a petition to Parliament signed by over 6000 New Zealanders calling for a rapid end to free carbon credits that subside large industrial emitters to pollute.

The ‘big five’ recipients of free carbon credits, which together receive nearly three quarters of all industrial allocation are Methanex, Ballance Agri-Nutrients, Tiwai Point Aluminium Smelter, New Zealand Steel, and Fletcher Concrete. Together, they produced a combined 5.6 million tonnes of CO2 in 2022, and received free carbon credits worth over $280 million to avoid paying for the bulk of that pollution in the Emissions Trading Scheme. The value of the annual subsidy rises over time with the carbon price, despite a slowly shrinking allocation rate.

Their emissions equate to the average CO2 output of 2.115 million vehicles, 46% of Aotearoa’s vehicle fleet.

“These numbers show the outsized footprint that a few big emitters are having compared to the average household, and how the policy incentives for these companies are completely round the wrong way.” said Alex Johnston, Don’t Subsidise Pollution campaign spokesperson, and Co-Director of Common Grace Aotearoa, which initiated the petition.

“We need an urgent end to free carbon credits and a plan in place to help these industries decarbonise, not prop up their existing production process.”

“Our petition of over 6000 signatures shows a strong mandate for reform and today we call on the Minister of Climate Change to use the Second Emissions Reduction Plan to initiate urgent action in this area. Otherwise his government’s main policy tool on climate change, the ETS, will be subsidising large multinationals to pollute.”

The petition delivery will include an installation that highlights the outsized footprints of these industries and the subsidy to pollute that they receive, while calling on the Minister of Climate Change to put a plan in place to end free carbon credits and follow the EU’s footsteps with a Carbon Border Mechanism.

What: Handover of 6000-strong petition to end free carbon credits in the Emissions Trading Scheme

When: 12:30-1:30pm, Tuesday 18th June.

Where: Parliament forecourt

Who: The petition will be delivered to Labour’s climate spokesperson Megan Woods, with Greens co-leader Chloe Swarbrick also attending. It will feature speeches from the Don’t Subsidise Pollution coaltion, including Anglican Archbishop Justin Duckworth, Parents for Climate Aotearoa’s Alicia Hall, and Common Grace Aotearoa’s Alex Johnston.

Visit https://www.endfreecredits.nz/ to learn more.

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