Emission Critical

   
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Emission Critical Issue 9: September 2009

Legislation establishing New Zealand’s emissions trading scheme (ETS or the Scheme) was passed into law on 10 September 2008. Since then, with the change in Government and a nine month review of the ETS, significant uncertainty has surrounded the design of the Scheme.

Following the release of the Select Committee recommendations on 31 August 2009, the Government indicated amendments to the ETS would be made. The Climate Change Response (Moderated Emissions Trading) Amendment Bill (the Bill) was introduced under urgency on 24 September 2009. This Bill amends the Climate Change Response Act 2002. The Government has indicated that it wants the Bill passed into law prior to the International Climate Change Summit to be held in Copenhagen in December 2009.

This edition of Emission Critical sets out the proposed key changes to the design of the ETS and details the actions businesses should take to be prepared.

 

Previous Issues:

Emission Critical Issue 8: September 2009


After many months on the backburner, climate change policy and greenhouse gas emissions are now back in the media forefront, with the release of the recommendations of the Emissions Trading Scheme Review Committee.

Since the election in November 2008, there has been significant uncertainly around the future of the Scheme’s design.  As part of its confidence and supply agreement with Act, the Government agreed to review the ETS and the special Select Committee was established.  However, as no legislation was passed to delay or alter the Scheme whilst this review was in progress, the ETS remains in force.  

This Emission Critical gives a snapshot of the current state of play on emissions, outlines the major recommendations of the Committee, provides a perspective on the possible policy decisions still to be finalised, and suggests how businesses can get ready.

 

Emission Critical Issue 7: December 2008

Following the election on 8 November 2008, the shape of New Zealand’s climate change policies is once again uncertain. As part of a coalition agreement to provide confidence and supply to the minority National Government, John Key’s Government agreed on 16 November to suspend the entering into force of the Emissions Trading Scheme (ETS) which received Royal assent and was passed into law on 24 September.

In this Issue:

  • The state of New Zealand climate change policy
  • Price based measures and the Kyoto Protocol
  • Key Issues: how to set the carbon price?
  • What should businesses do now?
  • Points of obligation for future ETS or carbon tax participants
  • Areas of Uncertainty
  • The impacts of climate change science
  • Concluding Comments

Emission Critical Issue 6: September 2008

On 10 September 2008, legislation establishing New Zealand’s emissions trading scheme (ETS or the Scheme) was passed into law. This edition of Emission Critical sets out the key design features of the ETS and examines some of the implications and obligations for both businesses and households.

In this Issue:

  • Summary of objectives and core design features
  • Background
  • What is an emissions trading scheme?
  • Which sectors are captured and when?
  • Point of obligation – who is a participant?
  • Voluntary ‘opt-in’ provisions
  • The allocation of emissions units and additional assistance
  • Unit of trade
  • Sourcing of Emissions Units
  • The indirect impacts of the scheme - cost
  • Tax Issues
  • Accounting Issues
  • Way forward
  • Concluding comments

Emission Critical Issue 5: December 2007

On 20 September 2007, the Government released The Framework for a New Zealand Emissions Trading Scheme (‘Framework Document’), its core price based mechanism for addressing climate change issues in New Zealand. The Framework Document proposed that the legislative mandate for the Emissions Trading Scheme (‘ETS’) would be through an amendment to the Climate Change Response Act 2002 (‘the Act’).

In this Issue:

  • Background
  • Point of Obligation
  • Core obligation
  • Allocation
  • Allocation to pre-1990 forests
  • Allocation to industry
  • Allocation to agriculture
  • Phasing out of free allocation
  • Growth in emissions
  • Unit of trade and liquidity
  • Compliance and enforcement
  • Conclusions

Emission Critical Issue 4: September 2007

The tax consequences of the Government’s proposed emissions trading scheme (ETS) are the subject of an Officials’ Issues Paper released for public consultation on 24 September 2007.

In this Issue:

  • Emissions Trading Tax Issues
  • Scheme design
  • Core tax issues in sectors other than forestry
  • Core tax issues for pre-1990 forestry
  • Core tax issues – forestry post-1989
  • Goods & Services Tax
  • Compliance and enforcement

Emission Critical Issue 3: September 2007

On 20 September 2007, the Government released its much anticipated framework for an Emissions Trading Scheme (ETS) and measures to encourage forestry and more sustainable land use. Emission Critical provides an overview of the Government’s announcements and proposed solutions, describes the ETS, how it will function, who will be captured under the proposals, and the implications for businesses.

In this Issue:

  • Background
  • The Proposals – an overview
  • What is an NZU?
  • Who is captured?
  • How are emission permits allocated?
  • Point of obligation
  • What are the implications for business?
  • Where to from here?
  • Summary

Emission Critical Issue 2: July 2005

On 16 June 2005, New Zealand admitted it was unlikely to meet its obligations under the Kyoto Protocol, meaning the country is exposed to a signifi cant liability. Emission Critical provides the background to the issue, an explanation as to why this is suddenly a problem, discusses the ramifi cations for New Zealand, and explores what can be done to address the situation.

In this Issue:

  • Background
  • Why the change?
  • Ramifi cations for New Zealand
  • What can New Zealand do?
  • Summary

Emission Critical Issue 1: May 2005

Welcome to the first edition of Emission Critical, our new publication for keeping the business community abreast of developments in Climate Change as they relate to New Zealand.

In this Issue:

  • Implementing the carbon tax…
  • Negotiated Greenhouse Agreements (NGAs)
  • Small & Medium Enterprises (SMEs) Grant Scheme