Emissions trading a step closer

Divisions in the select committee on emissions trading are concerning, but there is enough common ground to work towards consensus, according to Business NZ.

Chief Executive Phil O’Reilly says among the divisions there are still positive areas of agreement.

“With the exception of only one party, all others support a trading scheme.

“There is positive discussion around allocation of credits, international linkages and transition mechanisms and some support for including intensity standards in the scheme. These must all form a part of the scheme’s overall toolbox.

“Intensity standards are required to recognise companies that are high emitters and are often already operating at international best practice environmental standards but need the ability to grow without being unfairly penalised.

“But competitiveness at risk must not be downplayed. Now is not the time to be leading with our chin in the absence of action by our trade competitors. Businesses are up for doing their fair share but careful calibration of the transition into the scheme is needed.

“Business wants certainty around a fit for purpose emissions trading scheme, to be able to invest with confidence in a sustainable future, and we have a positive expectation that the Government will finalise a deal that uses the best from all parties’ positions,” Mr O’Reilly said.