The Government’s announcement that they will maintain a lid on the cost of the New Zealand ETS is a welcome move from the perspective of exporters, according to Catherine Beard, Executive Director of ExportNZ.
“The major concern we had was that unless the current moderating features of the scheme were maintained, our exporters would become less competitive in international markets against companies that were not facing similar emissions costs.
“Continuing the ‘one for two’ obligation and maintaining the $25 fixed price of carbon were things we advocated in our submission and it gives trade exposed companies some comfort they will remain internationally competitive into the future.
“We are also supportive of the decision not to restrict NZ companies from accessing the international carbon markets, such as the United Nations Clean Development Mechanism (CDM units) which would have limited their ability to buy the ‘least cost’ emission reductions, which is what a market is supposed to deliver.
“These are sensible moves to ensure we are participating in the global effort, but in such a way as to remain competitive in a world where putting a price on carbon has been patchy at best.”