Emissions Trading
As part of the first phase of climate change consultation, the Government sought the views of New Zealanders on domestic emissions trading. Domestic emissions trading refers to a regulatory regime where specified businesses and other organisations would have obligations to report their emissions and to hold or purchase a corresponding number of emission units.
The units would be tradeable, and those with obligations could decide how much to reduce emissions and how many units to purchase. Responsible parties who deforest land, or who harvest Kyoto forests (i.e. forests planted from 1990 onward) would also have obligations to acquire or hold the necessary number of emission units (or sink credits) for the carbon released upon deforestation or harvesting.
Up until December 2001, the Ministry led a working group focused on the design of an emissions trading system within the New Zealand environment. Meetings were held with representatives of various industry sectors to discuss technical issues in the system’s design. Information obtained from these meetings was used in the development of a consultation document and a domestic emissions trading working paper.
Although an emissions charge is currently part of the preferred policy package under the Kyoto Protocol, the Government has retained the option of introducing emissions trading as an alternative to an emissions charge if the international carbon market is functional.
Available Documents
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