http://www.theaustralian.com.au/national-affairs/carbon-plan/new-zealand-rates-i...

NEW Zealand's emissions trading scheme has been declared a success in a new report but will be reviewed to ensure it is compatible with Australia's new carbon tax.

The first report on the New Zealand ETS was released today, with Climate Change Minister Nick Smith declaring it had “performed to expectations”.

The scheme, introduced in full last July, dictates a carbon price of $NZ12.50 ($A10) per tonne of CO2 emissions, considerably lower than the $23 specified under Australia's newly announced plan, due to launch on July 1, 2012.

Dr Smith said the Kiwi scheme had clearly changed behaviour, with forest areas getting larger and growth in price incentives for renewable electricity.

Just two per cent of emitters had not met their obligations, he said.

“It is encouraging that New Zealanders' net emissions are down for two consecutive years after a 23 per cent increase between 2000 and 2008,” the minister said.

He said that without the scheme, New Zealand would be exceeding its Kyoto target by 19.5 million units and facing international costs of $NZ485 million ($390 million).

Despite its success the scheme has been sent back to be reconsidered following Australia's announcement of a carbon tax.

Dr Smith said it was vital that New Zealand's efforts on climate change be carefully calibrated with trading partners. Any changes to the scheme will likely be announced in September.

However, chairman of New Zealand's ETS review committee, David Caygill, told Carbon News that most of the Australian announcements had already been factored into the panel's recommendations.

“The panel had essentially envisaged the outlines of what Australian has settled on when we put the report together,” he said. “I don't think we're talking about rewriting the report.”

Treasurer Wayne Swan visited Wellington soon after Australia's tax announcement last month, and made a point that Australians could be “comforted” that NZ's scheme was working effectively.

“Scaremongering has not actually matched the facts” in terms of its success, he said at the time.

“The scheme here is working well. The sky didn't fall in when the scheme was introduced in New Zealand and the sky will not fall in when the scheme is introduced in Australia.”

He and New Zealand counterpart Bill English discussed plans to link the countries' two schemes, saying that despite differences in parameters and carbon price, blending them would bring “clear benefits to both nations”.

Maqqa wrote on Aug 2^nd, 2011 at 12:46am:


That's why you started this thread? Just to get your point proven? I cam smell the ego from here.