Climate Change Response (Emissions Trading) Amendment Act 2008
| The Climate Change Response (Emissions Trading) Amendment Act 2008 | |
|---|---|
| New Zealand Parliament | |
| Date of Royal Assent | 25 September 2008 |
| Keywords | |
| climate change mitigation | |
The Climate Change Response (Emissions Trading) Amendment Act 2008 was a statute enacted in September 2008 by the Fifth Labour Government of New Zealand that established the first version of the New Zealand Emissions Trading Scheme, a national all-sectors all-greenhouse gases uncapped and highly internationally linked emissions trading scheme.
On 20 September 2007, after consulting on policy options for climate change and energy, the Labour-led Government announced that it intended to establish an emissions trading scheme in order to respond to climate change. Prime Minister Helen Clark stated: "The Government believes that an emissions trading scheme which puts a price on emissions creates the right incentives across the economy to use fuel and energy more efficiently".
On 4 December 2007, the Labour Government introduced the Climate Change (Emissions Trading and Renewable Preference) Bill into Parliament. The bill amended the Climate Change Response Act 2002 by inserting an emissions trading scheme including all sectors of the economy and all greenhouse gases. The bill also a restricted the commissioning of any new fossil-fuelled thermal power stations for 10 years.
On 9 September 2008, the sections of the Climate Change (Emissions Trading and Renewable Preference) Bill establishing the NZ ETS were separated into the Climate Change Response (Emissions Trading) Amendment bill.
On 10 September 2008, the Climate Change Response (Emissions Trading) Amendment Act 2008 had its third reading in Parliament and was adopted 63 votes to 57 with support from the Green Party and New Zealand First. The Climate Change Response (Emissions Trading) Amendment Act 2008 received the royal assent on 25 September 2008.
The proposed scheme was to cover all six greenhouse gases specified in the , carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6). It would be economy wide, covering all sectors including agriculture. 'Participants' who must account for their emissions will be few and high in the production chain of each sector and will have to surrender one New Zealand unit (NZU) or one internationally tradable Kyoto-compliant unit for each tonne of emissions. New Zealand units will be capped in number and distributed to participants either by grandparenting (gifting) or auctioning. Sectors would enter the NZ ETS at staggered dates, from January 2008 (forestry) through until January 2013 (agriculture), and have differing allocations of free New Zealand units. In general, participants who can pass on costs of the ETS, such as fuel companies to motorists, would not be allocated free units. While participants whose produce is priced internationally, such as dairy exporters, would be allocated a level of free units.
...
Wikipedia