Skip to content

Cold Feet: Emissions Trading Scheme May Be Delayed Down Under

The [New Zealand] government says it is likely to delay full implementation of the carbon trading scheme if there is no progress towards agreement on similar schemes in other developed countries.

However, it says there will be no immediate changes nor any delay to the scheme, which steps up a gear on July 1 with the entry of the transport sector, along with power stations and steel and cement makers. Forestry began in 2008.

Business groups have been putting pressure on the government to delay or soften the impact of the scheme, even though the current government won parliamentary support for a weaker version late last year.

Climate Change Minister Nick Smith says support measures, due to expire in 2013, might be extended to protect the competitiveness of New Zealand businesses operating under the emissions trading scheme, the only national scheme outside Europe’s.

“New Zealand is cautious about getting too far ahead of the global pack,” Smith says.

“We have programmed these sectors bearing the full price of their carbon emissions from January 1, 2013, but would reconsider that if no progress is made globally, and particularly amongst our key trading partners like Australia and the US,” Smith says.

Full story