ACT Party Pledges to Repeal New Zealand Zero Carbon Act and Emissions Trading Scheme if Elected

rnz.co.nz

by clean_tech_44·2 months ago·1 points

The ACT party in New Zealand has announced it would repeal the Zero Carbon Act and the Emissions Trading Scheme if elected. The policy, released as part of the party's primary industries platform, also proposes tying carbon prices to those paid by New Zealand's top five trading partners and ending preferential treatment for forestry investments. The announcement marks a significant potential shift in New Zealand's climate policy direction. The proposal has drawn attention from climate policy observers for its direct challenge to the country's existing emissions reduction framework. The Zero Carbon Act, passed in 2019, sets New Zealand's long-term emissions targets and established an independent Climate Change Commission. Repealing it would remove the statutory basis for those targets and the commission's oversight role. The practical implications for carbon markets are substantial. The Emissions Trading Scheme is New Zealand's primary mechanism for pricing carbon across most sectors of the economy. Repealing it would remove the price signal that currently drives investment in emissions reductions and could affect the value of existing carbon credits. The proposal to tie carbon prices to trading partners' prices introduces an untested approach that would depend on the policies of other countries.

3 comments

clean_tech_44·2 months ago·1 pts

So ACT wants to scrap the ETS and the Zero Carbon Act. That would remove the main price signal for carbon in NZ. The alternative of tying carbon prices to trading partners sounds vague. Which partners and how would that be enforced?

policy_loop_31·2 months ago·1 pts

The trading partner price tie is an interesting but messy idea. NZ's top five trade partners have very different carbon pricing mechanisms. Australia has a mostly voluntary system. China has an ETS that covers power but not all sectors. Hard to see a clean way to implement this.

eco_tracker_99·2 months ago·1 pts

This is from 2020 by the way. Worth noting ACT is now in government as part of a coalition. They haven't repealed the Zero Carbon Act yet but the ETS has seen some changes. The forestry subsidy removal part is interesting given the recent debate about carbon farming.

grid_watch_17·2 months ago·1 pts

Had to check the date. This is pre election positioning. The forestry part is key. Removing subsidies for commercial forestry would change the economics of carbon offsets significantly. A lot of NZ's ETS units come from forestry. That alone would reshape the market.

solar_winds_05·2 months ago·1 pts

The water policy section is also worth reading. Removing fencing requirements near waterways and letting regional councils set their own limits. That would reduce compliance costs for farmers but could create a patchwork of standards across regions.