New Zealand
Climate Change Response (Emissions Trading Reform) Amendment Act 2020.
Summary Description
Amends the Climate Change Response Act of 2002 to align New Zealand's Emissions Trading Scheme with New Zealand's objectives under the Paris Agreement of 50% reduction of net emissions below gross 2005 levels by 2030.
Species
Farmed animals
Jurisdiction
New Zealand
Sub-Jurisdiction
N/A
Type of Act
Legislation
Status
In force
Legal Value
Binding
Date Enacted
2021
Date Updated
June, 2023
Official Citation
Climate Change Response (Emissions Trading Reform) Amendment Act 2020
Strengths & Weaknesses
Strengths
- The legislation's scope covers emissions from livestock, and applies to a broad range of greenhouse gases, including Carbon Dioxide (CO2), Methane (CH4) and Nitrous Oxide (N2O).
- The law requires that all farms have a written plan to measure and manage their greenhouse gas emissions by 2025.
- The law further provides an implementation mechanism through an agreement with the agricultural sector called "He Waka Eke Noa" (M?ori prover which means "we are all in this together"). This agreement includes specific mitigation incentives and different pricing for long-term and short-term GHGs.
- The agreement further allows farmers to choose between a farm-level levy and a processor-level hybrid levy. Should this partnership not make enough progress in 2022, the standard ETS mechanism will apply, with livestock emissions to be priced at the processor level.
Weaknesses
- The law sets a cap on the price that operators must pay for emitting greenhouse gas emissions, and such a cap is often set too high and the price of GHG tonne set too low in light of the environmental impacts and the necessary measures to tackle the climate crises.
- Emissions trade may lead polluters to accumulate "emission units" instead of incentivising them to reduce their emissions. This, in turn, might make it difficult for other actors to enter the market.
- Until 2015 the NZ ETS was linked to the Kyoto Protocol emissions trade, purchasing emission units at low cost, and hinders progress in GHG mitigation and meeting climate goals.
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