Revised ETS 'more measured'

The revised emissions trading scheme proposed by the Government today better balances environmental and economic needs, says Business NZ.

Chief Executive Phil O’Reilly says the revised scheme indicates Government has listened to business concerns about potential economic damage by providing for a more measured transition into a full trading scheme while placing a price on carbon.

He says no scheme would be likely to get universal support, but the revised scheme goes some way towards meeting the needs of most sectors.

“The less rushed roll-out plan will be welcomed by industry and the energy sector, along with the agricultural sector which has also been given more time before entering the scheme,” Mr O’Reilly said.

“Business was most concerned that the scheme should have an intensity basis for protecting ‘at risk’ businesses, to avoid penalising firms that are growing. We are pleased that the Government has accepted this important point.

“The design around the surrender of permits reduces the cost to business while allowing forestry to reap the upside of international trading.

“Aligning the scheme with Australia’s ETS will also help prevent the loss of industry across the Tasman.”

Mr O’Reilly said business looked forward to engaging with Government on the finer points of the scheme, including eligibility for free permits.