1 May 2007

Media Release

Business Council welcomes move to launch New Zealand carbon trading market

New Zealand should move quickly to set up carbon trading market.

The New Zealand Business Council for Sustainable Development says a New Zealand Stock Exchange company (NZX) working group report proposing the country launch a carbon market, with influence across Asia and the Pacific, has to be welcomed.

A trading scheme should be launched sooner rather than later, and there is no need to wait for 2012, the next commitment period under the Kyoto Protocol, the Business Council's Chief Executive, Peter Neilson, says.

The Business Council whose members' annual sales equate to 30% of the country's gross domestic product - was the first business organisation to call for an emissions trading regime.

"NZX should be congratulated on its work looking at what's required to make a market work in New Zealand. We welcome the fact they are talking about a market which links to international prices, builds on existing emissions definitions and verification procedures and recognises the value of creating a forward market in emission credits to help businesses plan for the future," Mr Neilson says.

"We'd like to see a market get underway as soon as possible. To ensure there's depth in the emissions trading market we'll need to have a regime covering as many sectors in the economy as possible.

"It's now a matter of how quickly the Government is going to move. We need a national policy decision to cap and trade emissions and let the market get on with setting the price so businesses can factor that into their decisions to manage their emissions."

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