Let me give you my simple view.
Initially established under the Climate Change Response Act, the Emissions Trading Scheme (ETS) is New Zealand’s primary mechanism to achieve our international obligations under the Kyoto Protocol and the Paris Agreement to reduce CO₂ emissions.
The ETS was designed to ‘tax’ emitters who produce greenhouse gases, requiring them to either:
1. Buy carbon credits (NZUs) to offset their liability, or
2. Invest in changing their business operations to reduce their emissions over time.
Offsets are intended to be a fast solution for emitters to balance their emissions obligations. They are complementary to emitters strategies, not a permanent fix – the permanent fix is stopping the emissions at source. To encourage this transition, the ETS creates a financial push to motivate emitters change in behaviours—it's the stick that nudges innovation.
A Rocky Journey So Far
footprint, or:
The Forestry vs Farming Debate
forests.
supports their argument.
• 1984–1988: 225,000 ha planted
• 1993–1997: a massive 368,000 ha planted
The Bigger Picture
• Pest control programs
• Employment opportunities - preparation, planting, and maintenance of forests
• Economic benefits – additional income, spending into rural communities, pay taxes, contribute to our GDP and often improve land values.
Why It Matters in Everyday Life
One of the outcomes of the ETS pricing is to help ensure such pollution becomes less acceptable and less affordable. With a reported 40-50yrs of fossil fuel [oil] left in the ground, the runway is fairly short. Again, this means we must start changing behaviours.
Insurance Treatment
are declined, as not only will these create an increased risk profile, but such practices are not good for the environment.
Final Thoughts
• Encourages innovation and investment in clean technologies [using the cost of
compliance as the lever]
• Balances environmental health with economic opportunity
big emitting countries sit.