Negotiated Greenhouse Agreements
In July 2005 the Government set up a Climate Change Policy Review Team to undertake a three month review of current Climate Change policy settings and objectives.
The Review was a strategic "stock take" of where New Zealand is now and what our options are for Climate Change mitigation. The aim of this Review was to provide the Government with the basis for strategic choices for the longer term.
The Review Report was delivered to the Minister Responsible for Climate Change Issues, David Parker, in December 2005. Following this Review, Minister Parker announced that the government would not be proceeding with its proposed Carbon Tax and would instead consider other ways to manage New Zealand’s greenhouse gas emissions.
It necessarily followed, then, that no further Negotiated Greenhouse Agreements would be entered into in the current policy-revision period.
Note: The below policy framework has been left on this site to provide historical context to the past position. Please consider the context accordingly. As above, the broad-based carbon tax in its form up to 21 December 2005 no longer exists.For information on the government’s current climate change policies, see policies and iniatiatives.
What is a Negotiated Greenhouse Agreement
New Zealand has ratified the Kyoto Protocol and is committed to assisting international efforts to reduce greenhouse gas emissions.
As part of this commitment, the Government's objective is that New Zealand should have made significant reductions in greenhouse gas emissions relative to "business as usual" and be set towards a permanent downward path for total gross emissions by 2012.
To help achieve this objective, a carbon tax will be introduced on 1 April 2007 initially set at $15 a tonne of carbon dioxide. This tax will apply to carbon dioxide emissions from the consumption of fossil fuels, such as coal, gas, petrol; and from industrial processes, such as chemical reactions involved in manufacturing.
The Government has introduced NGAs for firms or industries that, as a result of the carbon tax, face significant risk to their competitiveness relative to producers in countries with less stringent climate change policies.
To reduce the impact of the carbon tax on these New Zealand firms, the Crown will enter into negotiations for a NGA with firms that meet the eligibility criteria.How to apply
There is a two step process for firms or industries wishing to enter into a Negotiated Greenhouse Agreement (NGA):
- Determining if a firm or industry is eligible to negotiate a NGA
- The negotiation of a NGA
Firms or industries wishing to be considered for a NGA are required to submit a NGA application. Firms seeking Negotiated Greenhouse Agreements should refer to the NGA Guidelines (PDF 76KB).
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Last updated: 20 March 2008
