The Taxpayers’ Union is calling on the Government to remove all price controls from carbon credits following today’s auction failing to clear the minimum reserve price for the fourth quarter in a row.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“The government already sets the quantity of credits available, so they should let the market decide the price. Setting arbitrary minimum and maximum prices makes the market less efficient and drives up prices for businesses and consumers.

“Today’s failed auction will put pressure on the carbon price, further adding strain to the cost of living. Removing price controls would help to ensure the lowest-cost pathway to emissions reduction and ensure maximum freedom for people’s decision-making over what products to consume, within the sinking cap on net emissions.

“If we want to be world leaders in climate change we must ensure that the Emissions Trading Scheme is simple and efficient so that other countries are able to use the New Zealand model as a blueprint for emissions reduction in their own country. Anything else is simply a virtue signal that punishes families for absolutely no environmental gain.”

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