The Government’s consultation document requests input on how to adapt the design of the New Zealand Emissions Trading Scheme (NZ ETS) so it can more effectively support New Zealand’s transition toward a net-zero-emission economy. Our submission focuses on the core design features relating to the management of unit supply, unit prices, international purchasing and industrial free allocation.
In our view, the next phase of reforms to the NZ ETS should seek to achieve:
Environmental effectiveness: by enabling the system to make a genuine and ambitious contribution toward both domestic and global decarbonisation in line with New Zealand’s current targets and future aspirations
Policy and price predictability: by creating structural mechanisms and processes that support decision making under uncertainty and enable efficient investment decisions that will unlock transformational change.
Leining, Catherine, Suzi Kerr and Niven Winchester. 2018. "Improvements to the New Zealand Emissions Trading Scheme: Submission to the Ministry for the Environment." Motu Economic and Public Policy Research. Wellington, New Zealand.