ETS delays costly for exporters, taxpayers

Continuing to exclude agriculture from the Emissions Trading Scheme puts our clean, green brand at risk, delays the adoption of clean technology, and passes the cost of pollution on to taxpayers, Green Party Co-leader Metiria Turei said today.

The National Government has announced a second delay in the introduction of agriculture to the ETS out to 2015 at the earliest, and extended the two-for-one price subsidy and the $25 a tonne price cap.

"New Zealand is missing the chance to protect and enhance its $20 billion clean, green brand," said Mrs Turei.

"Consumers in our export markets are becoming increasingly concerned about the carbon emissions tied up in the products they consume.

"As Pure Advantage has noted, "countries that reduce the carbon dependency of their economies most quickly and develop carbon-technologies will be the most prosperous in the 21st century".

"As an agricultural producer at the bottom of the world, New Zealand has to prove that we are taking a proactive approach to reducing the carbon intensity of our exports. The Government is sending the opposite message," said Mrs Turei.

Arguments that agriculture cannot reduce its emissions and shouldn't be subject to the ETS ignore the facts.

"Agriculture can reduce its emissions and has already begun to do so," said Mrs Turei.

"Emissions per dollar of output are down 19% since 1990 and total agriculture emissions are down 6% since peaking in 2005.

"Introducing agriculture into the ETS would give a financial reward to farmers who continue to drive their emissions down.

"Keeping agriculture out of the ETS means that New Zealand families subsidise pollution.

"Last year, National's polluter subsidies cost $1.5 billion.

"These delays will only increase the deficit at a time of record government borrowing and slow the adoption of the technology and techniques we need to tackle climate change," said Mrs Turei.