Low-emissions economy: Submission to the Productivity Commission

This submission was made in response to an Issues Paper released by the Productivity Commission as part of their inquiry into New Zealand's transition to a low-emissions economy.

Despite having made a series of international commitments, New Zealand is currently on track to overshoot its Paris target by about 20 million tonnes of carbon dioxide. Our greenhouse gas emissions have climbed steadily since 1990, and we have yet to begin making a real transition to a low-emissions economy.

In theory, a cap-and-trade emissions trading scheme should help us reach emissions targets at least cost. More useful tightening of New Zealand’s ETS is envisaged, butby itself the ETS will not be enough. Of course, New Zealand could theoretically purchase carbon credits offshore to help meet the Paris commitment. But there is no guarantee that this will be possible.

We must be realistic – making such a transition will not be easy, and will require effort and  investment. To do this, we need a clear and stable way ahead so that investments in low-carbon technologies can be made with confidence.