New Zealand  Emissions Trading Scheme 

Summary of climate change package agreed with support parties

Assistance for households:

·         A one-off electricity rebate to all households in 2010 to assist with higher energy prices

·         A one-off cash payment to families who are in receipt of benefits, superannuation and Working for Families tax credits in 2010.

·         A $1 billion dollar energy efficiency fund to improve household investment in initiatives such as insulation and more efficient heating, over 15 years starting in 2009.  This fund will be managed by EECA and targeted on income and/or energy needs households.

Assistance for businesses:

·         A contestable fund of 150,000 units a year from 2010 – 2012 to help drive the take up of innovative technology by trade-exposed industrial firms that will significantly reduce or have the potential to significantly reduce industrial emissions.

·         Assistance to the fishing sector in adjusting to higher fuel prices through a free allocation of units equal to 50 per cent of the impact of the ETS on fuel costs for a three year period.

·         A one-off payment to offset the cost disadvantage Wellington’s electric buses and trains will see in 2010, given that diesel does not enter the ETS until 2011.

New climate change targets:

·         Setting a government target of reducing all greenhouse gas emissions in the agriculture sector by 2013 by 300,000 tonnes CO² equivalent.

·         Gazetting this and other targets already announced by the government.  The targets will remain non-binding but they will be used to review progress.

Improvements for the Environment:

·         Strengthen the controls on the surrender of AAUs to help ensure that only high-quality units will be traded in the scheme.

·         A National Policy Statement on biodiversity by 1 February 2011.

The allocation process:

·         The introduction of a new requirement for the agriculture and industry allocation plans to be scrutinised by select committee and parliament.

·         Include in the five yearly review the costs and benefits of establishing an independent or semi-independent government body to carry out the allocation process

·         Adding an additional principle that the Minister must have regard to when developing allocation plans, to ensure trade exposed businesses only receive units for the proportion of their production which is trade exposed.

Issued by NZ Government 27 August 2008