Support for ETS slumps further. Business in dark over eligibility

Business support for the Emissions Trading Scheme due to start on July 1st appears to have slumped, and 90 per cent of businesses are in the dark over a key provision of the scheme – whether or not they are eligible for a carbon emission allocation.

According to a survey by the Employers and Manufacturers Association (Northern) 86 per cent of businesses don’t support the ETS being implemented on July 1st in advance of any comparable commitment by our trading partners.

“87 per cent say we should not proceed with our ETS in the absence of a similar Australian scheme,” said Alasdair Thompson, EMA’s chief executive.

“An overwhelming majority of businesses – 90 per cent - did not know if they are eligible for an allocation of carbon credits under the ETS.

“Neither do they support New Zealand leading the world with our ETS.

“No other country is adopting an ‘all sectors, all gases’ approach to reducing climate gas emissions. The only other scheme – in the EU – will cover just four per cent of output. Ours will cover 100 per cent of output.

“44 per cent of our businesses believe the ETS will have a serious or extremely serious impact on them, with another 48 per cent expecting it to be an issue to manage though not serious.

“Six months ago we asked if reductions of 10 to 20 per cent to our carbon emissions were achievable by 2020. At the time 53 per cent of businesses thought not. Now, 65 per cent think the reduction target is not achievable.

“On the other hand, those thinking the reduction targets were achievable has dropped from 31 to 23 per cent while those believing it ‘very achievable’ have fallen from five to two per cent.

“Half our respondents want New Zealand to adopt climate change measures at the same pace as our main trading partners. Another 38 per cent want us to become a late adopter of such measures. Just eleven per cent want New Zealand to move ahead of our main trading partners.

“The survey conducted online early in April attracted 612 participants; the survey last October 346.”