16 November 2009

ETS amendments bill should not pass, says Environment Commissioner

"It is extremely disappointing that the Committee has not reached a consensus to improve the bill."

"As it stands, the amendments to the bill virtually guarantee the ETS will not achieve its stated goal of reducing our greenhouse gas emissions, so I cannot support the bill being passed," Dr Wright, Parliamentary Commissioner for the Environment said today, referring to the Finance and Expenditure Committee report back on the ETS.

"Putting a price on the carbon you emit, which the ETS does, nudges us towards becoming a low carbon economy. Unfortunately, the amendments almost remove the price signal altogether. And it's the taxpayer who will bear the cost of Parliament's failure to address fundamental problems with the bill."

"My major concern with the proposed amendments is the changes to allocation - or subsidies - after 2012. The allocation of free carbon credits to industry is extremely generous and removes the carbon price signal where New Zealand needs one the most."

The Commissioner's full submission to the Finance and Expenditure Committee and list of recommendations can be accessed here or phone 04 471 1669 to request a copy.

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