Oslo, 28 April 2010

New Zealand will not postpone its emissions scheme, the government said today. Several industry organisations called for New Zealand to defer its carbon trading scheme after Australia announced yesterday it has put its emissions market on ice until at least 2013. But Climate Change Minister Nick Smith today said the ETS would be expanded to new sectors from 1 July this year as planned. “There would be real instability and uncertainty in deferring the emission trading scheme’s introduction at this late stage,” he said in an announcement.

He dismissed claims from lobbyists claiming that New Zealand is going solo on combating emissions, pointing out that 29 of the 38 countries that have targets under the Kyoto protocol already operate carbon schemes.

The New Zealand scheme currently covers the forestry sector, but energy producers, industry and transport will be included from 1 July.

“This is a long-term issue requiring a steady and consistent approach. Our strategy has been to start the transition early but at a softer rate,” said Smith.

The scheme will have a fixed price of NZ$25 ($17.90) until 1 January 2013. During that period covered companies will only need to surrender permits for 50 per cent of their emissions.

Smith warned again today that unless other countries step up their climate efforts, New Zealand might prolong these arrangements.

“The government is cognisant of international developments and ensuring New Zealand businesses remain competitive. We have scheduled a review in 2011 and will not be proceeding with full obligations and additional sectors unless progress is made by New Zealand’s trading partners,” he said.

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