Analysis shows National's ETS Worst of All Worlds

new-zealand-labour-party

Wed Jun 23 2010 12:00:00 GMT+1200 (New Zealand Standard Time)

Analysis shows National's ETS Worst of All Worlds

Wednesday, 23 June 2010, 4:17 pm
Press Release: New Zealand Labour Party

**Analysis shows National's ETS the "Worst of All Worlds"
**
A book by Victoria University economist Geoff Bertram and climate change analyst Simon Terry highlights the deep flaws in National’s Emission Trading Scheme, Labour’s climate change spokesman Charles Chauvel said today.

“The Carbon Challenge, published today, confirms many of the warnings given by the Treasury and Labour last year when Nick Smith was proposing amendments to the Emissions Trading Scheme,” Charles Chauvel said.

The work predicts that taxpayers will face a Kyoto Protocol liability of between $1 billion and $5 billion, and describes National's ETS as "technically obsolete" and "beyond rescue" as a sustainable framework for tackling climate change.

"The Carbon Challenge indicates that the ETS as currently configured will not reduce emissions, will subsidise big polluters at the expense of households, and will undermine public support for a stronger scheme in the future.

"Only one in every five dollars charged will be available to pay off New Zealand's Kyoto liability, and households will bear half the total costs of the ETS during its first five years, while accounting for just a fifth of all emissions.

“Households, small to medium industry, commerce and services and transport operators will pay 90 per cent of the costs resulting from the ETS during the first five years while being responsible for only 30 per cent of total emissions.

“National’s ETS is the worst of all worlds – and shows National at its ‘short term thinking, bury the problem for now’ worst.

"The authors show that with National's ETS we have a mechanism that will see pollution rise, big polluters heavily subsidised and households and small businesses bearing the cost,” Charles Chauvel said.

ENDS

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