Opportunities from ETS delay

Business NZ Chief Executive Phil O’Reilly says business has been concerned at the speed at which the government has been moving towards an ‘all sectors all gases’ emissions trading scheme, and with several recent reports highlighting the economic risks, the government is to be congratulated for paying heed.

“The fact that our government will now delay entry into the ETS for transport fuels till 2011 gives us an opportunity to pause the headlong rush into legislation by the middle of this year.

“Business NZ has long advocated aligning our actions to those of our major trading partners, for example Australia, which intends introducing its ETS in 2010.

“The Australian government intends to have a discussion document out for public consultation by July this year. As long as it is in New Zealand’s interest, this could be a good opportunity for us to start working towards similar dates.”

Mr O’Reilly said the challenge was now to ensure the ETS was as robust as it could be. Key issues would be basing it on carbon efficiency rather than simple carbon reductions, and achieving adequate protection for at-risk firms.