The Commission’s final advice released today includes more discussion of the role of the ETS in achieving net zero carbon emissions by 2050. But it does not provide sufficient justification for compromising the Emissions Trading Scheme, BusinessNZ says.
BusinessNZ chief executive Kirk Hope says the CCC policy recommendations that limit offsetting activities would still impair the ability of the Emissions Trading Scheme to do its job.
“Business is supportive of decarbonising the economy, but we wish to do it in a way that does not harm productivity and jobs.
“It’s good to see the CCC has undertaken further sensitivity analysis to test how further uncertainties could impact on the ability to meet the recommended emissions budgets
“Business will be heartened that the CCC’s final advice contains more discussion of the need for policymakers to work closely with business to ensure the policies do least economic damage.”
Mr Hope said business would also be seeking reassurance that CCC recommendations would not end up imposing more costs than needed to reach emissions reduction targets.
“There is concern among business that the CCC may not be considering a ‘least cost’ approach to its policy recommendations. We believe policy changes as significant as these should receive cost benefit analysis that can show the least cost possible falling on New Zealand producers and consumers from the regulations arising from the CCC’s recommendations.”
“The onus is now on the Government to take into account these concerns when considering its emissions reduction plans.”