If re-elected, NZ government to slow carbon trade expansion

If New Zealand’s ruling National-led government wins the elections scheduled for 26 November, the country’s carbon trading scheme will be slowed to reduce costs to the economy.

The centre-right party will take on board the recommendations of the mid-September review, which extends the previously planned transition deadline of 2013 extended to 2015. After this date, energy, transport and industrial sectors will pay the full cost of NZ$25 (US$20.25)/t of carbon.

“This approach slows the cost impacts on households and businesses but continues the progress needed to drive investment in renewable energy, clean technologies and forestry,” said Climate Change Minister Nick Smith.

In addition, it is not entirely a given that the economic key agricultural sector, which represents around half of the country’s emissions, will be included from 2015, he added. “National will review the position in 2014 and only include agriculture if new technologies are available and more progress is made internationally on reducing greenhouse gas emissions,” he said.

Moreover, if the National party is mandated with another term in office, the government will also move to link the New Zealand and Australian carbon markets after 2015.