New Zealand’s emissions trading system remains stable following decisions released today, says BusinessNZ.
BusinessNZ Chief Executive Phil O’Reilly says the confirmed rules - governing access to international emission units and the timeframe for their use - will bring more certainty to those involved in the ETS through to 2015.
“The decision not to materially alter the features of the ETS and not to increase the economic burden of the scheme ahead of other countries that are lagging in taking action will reassure participants in the scheme and ensure that the price of electricity and fuel does not rise.”
“Business welcomes the Government’s ongoing commitment to international carbon markets and its focus on ensuring sufficient supply of units by options such as auctions. Such options are needed to ensure carbon prices faced by New Zealand businesses don’t rise dramatically.”
But he said the absence of access to Kyoto units raised significant issues from 2015.
“We should now be actively looking for alternative international sources of emissions units to ensure our emissions trading system remains stable and internationally linked.”