environment

Big ETS changes proposed

Climate change proposals that would transform the Emissions Trading Scheme by capping emissions at 2020 levels, limiting the number of emissions in the system and doubling the carbon price cap to $50 a tonne were released for discussion last night.

Climate Change Minister James Shaw and Energy Minister Megan Woods put out a joint news release at 5.21pm last night. Here's the full discussion paper.

There are over 100 questions addressed in 133 pages over 11 chapters in two parts for energy, farming, transport and policy experts to peruse before Christmas. 

Some of the far-reaching proposals include:

- bans on new coal-fired boilers and a phase out of existing ones by 2030,
- introducing a levy on the use of coal-fired boilers, (one for the dairy industry to consider)
- creating a state-owned enterprise for renewable power investments, (one for the gentailers to consider)
- creating a 'Power Purchase Agreement Platform' whereby the government 'could facilitate match-making and/or assume some of the burden of merchant power price risk', (one for the energy markets to consider)
- creating a 'Government-sponsored storage facility for firming hedge products,' as a single market buyer for coordinated procurement of new generation, (Government getting into the electricity market in depth)
- tax incentives for renewable electricity generation.

Help us create a sustainable future for independent local journalism

As New Zealand moves from crisis to recovery mode the need to support local industry has been brought into sharp relief.

As our journalists work to ask the hard questions about our recovery, we also look to you, our readers for support. Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.

Comments

Newsroom does not allow comments directly on this website. We invite all readers who wish to discuss a story or leave a comment to visit us on Twitter or Facebook. We also welcome your news tips and feedback via email: contact@newsroom.co.nz. Thank you.

With thanks to our partners