More headroom for a better carbon scheme

Business NZ says our changed position on greenhouse gas emissions gives us room to move on emissions trading.

The 2009 Kyoto Position Report shows New Zealand is no longer in deficit and has a surplus worth around $240 million.

Business NZ Chief Executive Phil O’Reilly says this means New Zealand has the time to ensure the best possible policy response to climate change, rather than being rushed into a possibly flawed scheme.

“We should now take the time to thoroughly explore all options for reducing carbon emissions while safeguarding economic growth.

“Today’s figures are positive in that we no longer have a net liability to be paid. But they also underline the fact that a Kyoto surplus can result from a drop in economic growth. A key reason for the reduction in emissions was lower stock levels on farms because of the 2007/8 drought – not a positive situation.

“We now have some headroom for our work towards reducing emissions in a way that does not harm economic growth and which takes into account our unique position as a developed country based on agriculture.”