By Lloyd Burr
The ACT Party is sticking to its guns, saying the Emissions Trading Scheme (ETS) is not working and needs to be “put on ice” despite the Government saying it has been successful and is reducing emissions.
Climate Change Minister Nick Smith today announced the ETS, which has been in place for just over a year, is “working well, emissions are being reduced and it is driving new investment in forestry and renewable electricity”.
But ACT’s environment spokesperson Don Nicholson, says there’s no proof of a reduction of emissions and letting the market drive for efficiency would achieve better results.
“I have had no one tell me what the achievement is in terms of averting global temperature rise or global warming," says Mr Nicholson.
“If Minister Smith can show me the achievement in terms of global temperature change that New Zealand has had by doing this first year of the ETS, then that’s great, but he hasn’t. I want to see what the achievement is.”
Dr Smith says emissions have dropped and “New Zealand’s net emissions are down for two consecutive years after a 23 percent increase between 2000 and 2008”.
“We are on target to comfortably meet our Kyoto target with a projected 21.9 million tonne surplus. Without the ETS we would be exceeding our target by 19.5 million units and face international costs of $485 million.
“The price incentives of the ETS helped renewable electricity hit a 12-year high of 79 percent in 2010. Eleven new renewable power stations totalling 1340 MW of capacity have been consented in the past year – 59 percent wind, 26 percent geothermal, 13 percent hydro, 2 percent tidal. This is an all time high, is five times the annual average of the past decade, and contrasts with most new capacity over the last decade being fossil fuelled,” he says.
But Mr Nicholson wants the scheme gone.
“The Government needs to put the scheme on ice. No minister ever wants to see their baby be shot down. I understand he has worked hard on what he inherited… but I’m not sure everyone in his party supports it.
“You have to tell the country that they don’t like cows, they don’t like cars and they don’t like coal. So what do they like? Do they like any part of the economy? Realists know that you have to use the environment wisely and responsibly.”
Instead of the ETS, Mr Nicholson suggests the Government lets the market drive environmental improvements.
“The ETS is based around altering behaviour to increase efficiency. We need to allow market drivers and free enterprise to deliver on efficiency rather than this alarmist stuff we have at the moment.
“It’s all about population dynamic and creating competition but we have so many people that don’t trust markets to deliver it.
“New Zealand farmers, subsidy free, are already at the leading edge of efficiency and the people of New Zealand and the Government, at least past Governments, don’t seem to know that,” Mr Nicholson says.
The future of ETS is still up in the air and Dr Smith says the Government is considering the scheme’s future.
“The Government’s decisions will reflect our underlying approach of New Zealand doing its fair share relative to other countries on climate change and being mindful of the cost impacts on households and businesses,” he says.
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