Select Committee fails to fix ETS Amendment Bill

Posted on 18 October 2012 in Carbon, Forestry | Comments Off on Select Committee fails to fix ETS Amendment Bill

The Finance and Expenditure Select Committee has released its report on the Climate Change Response (Emission Trading and Other Matters) Amendment Bill.

Disappointingly, the Bill remains largely unchanged from its first reading –  Read the Select Committee Report

Despite the comments of Minister Groser in his press release (Government to clarify use of international units in ETS), we at Woodnet see little that will do anything to reduce the cost to the average New Zealander or allow credit producers to benefit from what the average New Zealander is being charged by some businesses in New Zealand.

The Select Committee had the opportunity to do something that would positively affect long term land use in New Zealand at no additional cost to what most people have been happy to pay. Despite the multiple provision of good sound information the Select Committee appear to have ignored it and are rolling out what seems to have become established rhetoric over the last six months.

Many of our clients have pre-1990 forest land that has devalued due to the Climate Change Response Act encumbrance on it – at $20/NZU it was unfairly compensated, at less than $3/NZU it’s a farce!

Close to 60% of post-1989 land is now registered into the ETS – those landowners pay $20-$25 at the pump or electricity meter, yet their credits are almost worthless. Sound decisions made on Government Department advice and expectation has cost them dearly. They too are New Zealand businesses and incidentally the ones that make it possible for New Zealand to boast a carbon surplus. We are struggling to see much out of this review that acknowledges these landowners with anything but disdain.

We appreciate that it might be hard for organisations that cannot see past the next opinion poll to make long term decisions for our nation’s benefit, however we believe that this Bill is so far from practical reality that it’s still worth lobbying your local MP to make a difference.

Read other commentary about the report:

Returned ETS Bill a failure – Environment Commissioner

No restrictions on foreign sourced carbon credits confirmed

ETS process a rubber stamping exercise – Mackey

Groser deliberately missing the point – Mackey

Iwi lose out in Carbon Crash

Govt throws bone to ETS critics, looks to ban dodgy foreign credits