Climate Change legislation introduced into parliament Tuesday will be the milestone that ensures New Zealand's place as the world's first sustainable nation, said Finance Minister, Dr Michael Cullen in a press release Tuesday.
The two-pronged Climate Change Bill establishes a New Zealand Emissions Trading Scheme and legislates for the government's preference for new renewable electricity generation.
New Zealand Emissions Trading Scheme
Under the Emissions Trading Scheme (ETS) legislation, people or entities that are covered by the scheme will be obliged to 'surrender one emissions unit for each tonne of greenhouse gas emissions' for which they are responsible.
At the same time, 'activities that remove greenhouse gas emissions from the atmosphere' will earn one emission unit per tonne of emissions removed.
New Zealand Emissions Units (NZU's) can be traded within New Zealand or can be converted into Kyoto units for trading overseas.
Different sectors will be phased into the scheme over the next five years, Dr Cullen said, and assistance to help industry and agriculture adapt to the changes will continue until 2025.
The full energy emission (NZU) price will be paid by transport fuel importers from 2009. The Forestry sector (pre-1990 forest land) may register under the NZ ETS as participants from 2008 and stationary energy from 2010.
Government's Preference for New Renewable Energy Generation
In line with the government's objective (New Zealand Energy Strategy) to achieve, by 2025, renewable electricity generation of 90 percent of New Zealand's electricity generation, a 10-year moratorium has been placed on the construction of further fossil-fueled thermal energy generation.
This restriction will be lifted only where there is a threat to the supply of electricity or in other exceptional circumstances.
The Greens – Good and Bad
Green Party co-leader, Jeanette Fitzsimmons said the proposed Emissions Trading Scheme is well planned but fears that the effect of the Climate Change Bill on global emissions will be so slow that it will be too late to stop the devastating effects of climate change.
"There is no sense of urgency in this Bill. It is clever, and avoids a lot of fishhooks, but it does not reflect the sobering advice of climate scientists that we have just 10 years to put our emissions on a downward path to avoid dangerous levels of warming," she said in a press release.
Some global emitters will be subsidised by New Zealand taxpayers until 2025. All dairy industry emissions through the five years of the Kyoto protocol will be subsidised by the government, Ms Fitzsimmons said.
Methane escaping from mines during the mining process ('fugitive emissions') will also be exempt from the "obligations" under the emissions trade scheme.
Fugitive emissions have increased by 450 percent since 1990, says the Greens, and these could also be subsidised by the New Zealand taxpayer.
Sustaining the Future
New Zealand must participate in the challenge to reverse climate change if it is to sustain the viability of its agriculture and industry as well as promote other sectors of the economy such as tourism.
"Our green credentials must be rock solid to compete in a global market place where proven sustainability can be a point of competitive advantage," Dr Cullen said.