Aussie carbon price poses risk to NZ economy

The New Zealand Greens today congratulated the Australian Greens for implementing a carbon price with the Gillard Government, but warned New Zealand is at risk of being left behind.

Green Party Co-leader Russel Norman said his party applauded the Australian carbon price but was concerned the New Zealand economy could suffer if the Government didn’t improve on its weak Emissions Trading Scheme (ETS).

“If we continue with a weak carbon price, we’ll fall behind Australia economically as their businesses become more carbon efficient under the new scheme,” Dr Norman said.

“The support now being offered to clean technology in Australia, both in the carbon price and the $10 billion for clean energy announced today, means we risk losing some of our best and brightest clean technology companies to Australia. Instead, we’d be left with subsidised polluting industries.

“We’re already spending about $1 billion a year subsidising carbon pollution, and as the price of carbon goes up, that bill will go up too. We can’t afford to carry polluters while driving away our clean tech entrepreneurs.”

When National came to office they significantly weakened the emissions trading scheme that was put into place by the previous government with Green support.

“The Government has no excuse for further weakening the New Zealand carbon price and delaying the introduction of agriculture to the ETS.

“A price on carbon is an important tool to reduce greenhouse emissions and save ourselves and our kids from out-of-control climate change.”

Dr Norman also noted that the National-led Government’s review of the ETS should look forward rather than backward.

“The race is on to innovate and move to a low-carbon economy. By setting a higher and firmer price on carbon, Australia will have an edge over New Zealand in the new low-carbon economy.

“A higher price on carbon will stimulate thousands of smart green jobs in Australia, while New Zealand will be left behind with an economy choked by greenhouse gases.”

The Australian carbon price will be introduced on July 1, 2012 starting at $23 a tonne rising 2.5 per cent a year. It will be paid by around 500 of the biggest polluters and will be replaced by an emissions trading scheme from July 1, 2015.

Info on Australian carbon tax: http://www.cleanenergyfuture.gov.au/