Putting a price on greenhouse gas emissions – carbon pricing – is essential if emissions of carbon dioxide and other greenhouses gases are to be reduced. In the ETS, New Zealand has developed a good framework for carbon pricing, but thus far it has been little more than a framework. So it is encouraging to see proposals to strengthen it coming forward.
There are two sections in this submission.
- The first is focused on the importance of seeing beyond the next emission reduction target to the long-term goal of a low-carbon economy.
- The second is concerned with the rate of transition toward a low-carbon economy. The issues covered in the discussion document relate to this rate of transition, since each deals with an aspect of phasing out the protection of businesses and consumers from the full impact of carbon pricing.