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Published on Oct 4, 2017
Summary haiku: Dodgy credits stopped / Setting limits will send good / price signals at home.
Video 5/7 The era of dodgy credits should be over if we put the right safeguards in place under the Paris Agreement, we have an opportunity for our Emissions Trading Scheme to really work. More info at http://motu.nz/our-work/environment-a...
The ETS was originally designed so that New Zealand could adopt the international price on emissions. We did this because emission reductions help the climate in the same way wherever they take place, and globally it makes sense to achieve the most reductions possible for every dollar of investment. However, we found that international units weren’t from real emission reductions and as the international price collapsed, it was more attractive for New Zealanders to buy cheap, low-quality overseas units than reduce our own emissions. Our ETS has not accepted overseas units since mid-2015 and they are not currently traded in our market. The Paris Agreement offers a fresh start, with a new framework for emissions trading between countries. We must ensure that any overseas units used by New Zealand will produce the same benefit to the atmosphere as making emission reductions at home in New Zealand. By applying quality controls and quantity limits on overseas units used in the ETS, we can send the right kind of price signals that will help New Zealanders reduce emissions, while helping developing countries start their own low emission transitions.