Contact: Katie Kouchakji, email@example.com
LONDON, 26 July – Proposed reforms to the New Zealand Emissions Trading Scheme (NZ ETS) will create a more dynamic market and offer business more clarity over the system’s future, IETA says today.
The government today announced the final changes it will seek to the market’s design, following a comprehensive two-phase review of the NZ ETS. The first phase of changes were announced last year. Today’s announcement concerns the second part of the review.
The four changes the government has agreed are to: introduce auctioning; allow international units again from 2020, but with restrictions; introduce a different price ceiling, replacing the current NZ$25 (US$18.57) fixed price option for participants; and make decisions on the supply for the NZ ETS on a five-year rolling basis.
“The changes proposed by the New Zealand government will make the market more flexible, adaptable to changing circumstances, and more predictable,” says Dirk Forrister, IETA’s CEO and President. “Enhanced clarity over the future of the NZ ETS is good for businesses which are making decisions about tomorrow’s investments today.”
The NZ ETS began in 2008 and was the first carbon market in the Asia-Pacific. This is the second review of the programme since its inception, and the most extensive changes to its design. These changes, pending further consultation over the next 12-18 months, will make the market more readily able to link to others internationally.
“IETA supports changes to make the NZ ETS more dynamic and outward looking,” says Stefano De Clara, director of international policy at IETA and coordinator of the Australia and New Zealand working group. “The proposals will align the market more closely with the Paris Agreement and strengthen New Zealand’s leadership role on carbon markets internationally.”