Approved for release
CAB Min (09) 34/15 - Minute of Decision
Moderated Emissions Trading Scheme: Further Proposed Amendments to the Climate Change Response Act 2002
Portfolio: Climate Change Issues
On 21 September 2009, Cabinet:
Background
1 noted that on 14 September 2009, Cabinet:
- 1.1 agreed to a range of changes to the New Zealand Emissions Trading Scheme (NZ ETS);
- 1.2 agreed to include a Climate Change Response Amendment Bill (the Bill) on the 2009 Legislation Programme with a category 2 priority (must be passed in 2009);
- 1.3 invited the Minister for Climate Change Issues to report to Cabinet on 21 September 2009 for final policy approval and agreement to introduce the Bill;
[CAB Min (09) 33/9]
Further modifications to the NZ ETS
2 agreed that:
- 2.1 initial allocation of New Zealand units to the agriculture sector for the year 2015 be 90 per cent;
- 2.2 the phase out of free allocation for the agriculture sector will begin in 2016;
- 2.3 allocation of New Zealand units to owners of pre-1990 forest land will be 60 units per hectare for those owners who purchased land prior to 1 November 2002;
- 2.4 decisions as to persons eligible for allocation in the fishing sector should be taken by the Minister for Climate Change Issues under the fishing allocation plan;
- 2.5 allocation to owners of fishing quota will be based on tonnage, or equivalent, of quota held (on a one-off basis) on the date of introduction of the Bill to the House of Representatives;
- 2.6 there will be a review of allocation every five years;
Additional minor modifications to the NZ ETS
3 agreed to extend the power of the Minister for Climate Change Issues to require information from participants for the purposes of recommending eligible activities so that the Minister may require information for other purposes, including to assist with review of the NZ ETS and the establishment of allocative baselines;
4 agreed that the Bill not allow the fixed price option to be used for making true-up payments;
5 agreed that the amendment to clarify the ability of the Chief Executive to delay registration of post-1989 forest land participants who have failed to pay any applicable fees extend to all removal activity participants;
6 agreed that the Bill introduce new provisions referring to “unincorporated bodies” which allow persons jointly carrying out an activity to participate as an unincorporated body;
Next steps
7 authorised the Cabinet Legislation Committee to have Power to Act at its meeting on 24 September 2009 to approve the Bill for introduction;
8 noted that the Minister for Climate Change Issues is considering other matters of detail that will be referred to Cabinet for consideration after the Bill has been introduced.
Secretary of the Cabinet
Reference: CAB (09) 556; CAB Min (09) 33/9
Last updated: 9 October 2009
