This page has information on the 2011 independent review of the New Zealand Emissions Trading Scheme.
Link to the report
About the review
The Climate Change Response Act 2002 [New Zealand Legislation website] required a review of New Zealand's Emissions Trading Scheme (ETS) to be completed before the end of 2011.
The independent review of the NZ ETS has been completed and the Panel's report has been published by the Minister for Climate Change Issues.
Background to the report
Climate Change Minister Dr Nick Smith announced an independent Review Panel, led by David Caygill, and Terms of reference (PDF, 58 KB) for the review in December 2010.
The Panel started work in February 2011 and reported back to the Minister on 30 June 2011.
The review assessed the operation and effectiveness of the ETS and how the ETS should evolve beyond 2012, given there is still uncertainty over the outcome of international climate change negotiations and what climate change action will be taken by our key trading partners.
The Panel made recommendations to the Government on steps that can be taken to ensure that beyond 2012 the ETS:
- helps New Zealand to do its fair share to reduce global emissions and meet any international obligations
- delivers emissions reductions in the most cost-effective manner
- supports the long-term economic resilience of the New Zealand economy at least cost.
The review focused on the high-level design of the ETS, particularly:
- priority issues and questions for key ETS design settings arising from possible international frameworks post 2012, and considerations that the government might apply in developing a response to these priority issues and questions
- whether the ETS should continue to scale up to a full obligation and whether new sectors should incur surrender obligations on current legislated timetables after 2012, taking into account the domestic actions of key competitors, or what conditions should be met before proceeding with further sectors entering into the ETS
- the inclusion of synthetic greenhouse gases within the ETS, taking into account alternative approaches to reducing such emissions.
The panel published regular updates on the review (PDF, 78 KB) as its work progressed.
Submitters and stakeholders were notified that the final review report: Doing New Zealand's fair share: Emissions Trading Scheme Review 2011/final report had been published.
See the Minister's press release on the review report, September 2011 [Beehive website]