Emissions Trading Scheme Review Committee
Encyclopedia
The Emissions Trading Scheme Review Committee was a special committee of the Parliament of New Zealand
which conducted a review of the Fifth Labour Government's Emissions Trading Scheme
between December 2008 and late August 2009.
, the new National-led government
announced that, in accordance with its coalition agreement with the ACT Party, it would delay implementation of the Labour Government's ETS
and set up the Emissions Trading Scheme Review Committee to review the New Zealand Emissions Trading Scheme
("NZ ETS"). In November 2009, the National Business Review reported that an international carbon trading company, EcoSecurities Group, had postponed opening an office in New Zealand because of the National Government’s decision to delay the NZ ETS.
in his fruitcake views on global warming".
However, the final terms of reference, released on 9 December 2008, were to: "identify the central/benchmark projections which are being used as the motivation for international agreements to combat climate change; and consider the uncertainties and risks surrounding those projections". The most economic-oriented term was to: "consider the impact on the New Zealand economy and New Zealand households of any climate change policies, having regard to the weak state of the economy, the need to safeguard New Zealand's international competitiveness, the position of trade-exposed industries, and the actions of competing countries".
stating that the National-led Government was still intending to amend the NZ ETS.
According to NZ Law firm Simpson Grierson, although the review report made 34 recommendations on climate change policy, it did not make any specific recommendations to amend either the NZ ETS or the Climate Change Response Act 2002. Simpson Grierson considered that the key findings of the review were that:
Parliament of New Zealand
The Parliament of New Zealand consists of the Queen of New Zealand and the New Zealand House of Representatives and, until 1951, the New Zealand Legislative Council. The House of Representatives is often referred to as "Parliament".The House of Representatives usually consists of 120 Members of...
which conducted a review of the Fifth Labour Government's Emissions Trading Scheme
Climate Change Response (Emissions Trading) Amendment Act 2008
The Climate Change Response Amendment Act 2008 was a statute enacted in September 2008 by the Fifth Labour Government of New Zealand that established the first version of the New Zealand Emissions Trading Scheme, a national all-sectors all-greenhouse gases uncapped emissions trading...
between December 2008 and late August 2009.
Background
Immediately after the New Zealand general election, 2008New Zealand general election, 2008
The 2008 New Zealand general election was held on 8 November 2008 to determine the composition of the 49th New Zealand parliament. The conservative National Party, headed by its Parliamentary leader John Key, won a plurality of votes and seats, ending 9 years of government dominated by the social...
, the new National-led government
Fifth National Government of New Zealand
The Fifth National Government of New Zealand is the current government of New Zealand. It is led by Prime Minister John Key.After the 2008 general election the National Party and its allies were able to form a government, taking over from Helen Clark's Fifth Labour Government. The National party...
announced that, in accordance with its coalition agreement with the ACT Party, it would delay implementation of the Labour Government's ETS
Climate Change Response (Emissions Trading) Amendment Act 2008
The Climate Change Response Amendment Act 2008 was a statute enacted in September 2008 by the Fifth Labour Government of New Zealand that established the first version of the New Zealand Emissions Trading Scheme, a national all-sectors all-greenhouse gases uncapped emissions trading...
and set up the Emissions Trading Scheme Review Committee to review the New Zealand Emissions Trading Scheme
New Zealand Emissions Trading Scheme
The New Zealand Emissions Trading Scheme is a national all-sectors all-greenhouse gases all-free allocation uncapped emissions trading scheme...
("NZ ETS"). In November 2009, the National Business Review reported that an international carbon trading company, EcoSecurities Group, had postponed opening an office in New Zealand because of the National Government’s decision to delay the NZ ETS.
The terms of reference
The National-ACT coalition agreement mentioned reviewing the emissions trading scheme and possible alternatives to it, as well as "hear[ing] competing views on the scientific aspects of climate change" and considering whether responding to climate change is economically worthwhile. New Zealand Herald journalist Brian Rudman commented that National's approach was "indulging Mr HideRodney Hide
Rodney Hide is a New Zealand politician who was leader of the political party ACT New Zealand from 2004 to 2011. From 2005 to 2011 he represented the electorate of Epsom as its Member of Parliament. Rodney Hide was Minister of Local Government, Associate Minister of Commerce and Minister of...
in his fruitcake views on global warming".
However, the final terms of reference, released on 9 December 2008, were to: "identify the central/benchmark projections which are being used as the motivation for international agreements to combat climate change; and consider the uncertainties and risks surrounding those projections". The most economic-oriented term was to: "consider the impact on the New Zealand economy and New Zealand households of any climate change policies, having regard to the weak state of the economy, the need to safeguard New Zealand's international competitiveness, the position of trade-exposed industries, and the actions of competing countries".
Report of the Select Committee
On 31 August 2009, the Emissions Trading Scheme Review Committee reported back to Parliament, with Climate Change Issues Minister Nick SmithNick Smith (New Zealand)
Nicolas Rex "Nick" Smith is a New Zealand politician and a member of the New Zealand Parliament as a National Party MP...
stating that the National-led Government was still intending to amend the NZ ETS.
According to NZ Law firm Simpson Grierson, although the review report made 34 recommendations on climate change policy, it did not make any specific recommendations to amend either the NZ ETS or the Climate Change Response Act 2002. Simpson Grierson considered that the key findings of the review were that:
- the IPCC Fourth Assessment ReportIPCC Fourth Assessment ReportClimate Change 2007, the Fourth Assessment Report of the United Nations Intergovernmental Panel on Climate Change , is the fourth in a series of reports intended to assess scientific, technical and socio-economic information concerning climate change, its potential effects, and options for...
represents a consensus on scientific evidence, and should underpin New Zealand's policy. - the ETS should be the primary economic mechanism to respond to climate change.
- the ETS should cover all sectors and all gases
- at the December 2009 Copenhagen Climate Conference New Zealand should seek an agreement that reflects New Zealand’s willingness to do its fair share and play its part in setting the stage for further multilateral action for the post-2012 period.
See also
- Emissions tradingEmissions tradingEmissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....
- Energy in New ZealandEnergy in New ZealandDespite a comparatively small population and abundant natural resources, New Zealand is a net importer of energy, in the form of oil products. Approximately 35% of primary energy is from renewable sources. Energy consumption is 4.53 TOE per capita, just less than the OECD average of 4.67...
- List of climate change initiatives