New independent ETS advice will keep NZ on track to meet emission targets

Climate Change Minister James Shaw has welcomed the Climate Change Commission’s latest advice on the settings for the Emissions Trading Scheme.

“A well-designed system for pricing emissions is a central part of our Government’s climate change policy framework. The advice published today will guide Cabinet in its decisions about how to ensure the Emissions Trading Scheme cuts climate pollution in line with our targets,” James Shaw said.

“Over the last five years, our Government has put in place a clear, transparent and predictable set of rules for emissions pricing. This is now driving investment into low carbon solutions and cutting pollution.

“The changes we have made to the Emissions Trading Scheme include putting a cap on the total amount of pollution allowed within the scheme.

“The Climate Change Commission now provides us with independent, scientific advice on what this cap should be over a rolling five year period. This helps us to stay on track to achieve our national emission reduction targets.

“In addition to the total cap, the Commission advises the government each year on the number of units within the system that should be allocated via regular auction. They also advise on how the price can be managed so it remains predictable enough to give businesses the confidence to invest in low carbon alternatives.

“Officials will now consider the Commission’s latest recommendations and provide further advice to Ministers. There will then be an opportunity for people and organisations to have their say during a forthcoming public consultation.

“The Commission’s advice, together with public feedback, will inform a Cabinet decision on future unit limits and price settings for the Emissions Trading Scheme.

“The changes we have made to the Emissions Trading Scheme, along with the Emissions Reduction Plan and other policies we have put in place - such as the Clean Car Discount - have done more to address the climate crisis than the past 30 years of governments combined,” James Shaw said.