Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Bill

Last updated: April 6, 2023

Environment & Infrastructure

Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Bill

Published: April 6, 2023

Submitting To: Environment Select Committee

Issue for Business: The amendment bill updates and changes several provisions within the Climate Change Response Act (CCRA) regarding industrial allocations (IA) under the Emissions Trading Scheme (ETS). BusinessNZ Energy Council supports this Bill, with amendments. We support updating IA eligibility thresholds to better reflect the higher carbon price and risk of carbon leakage. We support new activity provisions within the Bill. We support changes to the EAF's methodology and information sharing. On the matter of baseline resetting, we support a one-off change to the years used for collecting data on emissions intensity. This protects the integrity of the ETS going forward. However, we oppose continued baseline reviews every ten years, and the power to rest baselines every five years if the over-allocation test is met. This provision strips away the signal to invest in step-change decarbonisation projects. Large projects resulting in significant step changes would not proceed, as the economic returns would not outweigh the large opex and capex associated with a project. This is undesirable for the environment and the Government’s targets.


Submit a Comment

Reports in Environment & Infrastructure

Improving market governance of the NZ ETS

Submitting to: Ministry for the Environment (MfE)Author: Levi GibbsDate: 2023-02-28Category: Environment & InfrastructureIssue for Business: MfE has outlined options to regulate NZU market based on financial legislation, including the regulation of NZU advice and ...

Natural and Built Environment (NBE) Bill and Spatial Planning (SP) Bill

Submitting to: Environment Select CommitteeAuthor: John PaskDate: 2023-02-24Category: Environment & InfrastructureIssue for Business: The Government is replacing the Resource Management Act (RMA) with 3 new Acts - the Natural and Built Environment (NBE) Bill, the Spatial ...

Proposed Changes to the Wetland Regulations

Submitting to: Ministry for the Environment (MfE)Author: John PaskDate: 2022-07-08Category: Environment & InfrastructureIssue for Business: Government is revising the wetland regulations given the potential unintended consequences of the initial regulationsAction: ...