The Ministry for the Environment called for submissions on its Consultation Document regarding Proposed Setting for Reforming the New Zealand Emissions Trading Scheme (NZETS).
We support the policy intent of the Consultation Document. We agree that a gradual and deliberate transition to reduced emissions will be less disruptive and costly to business.
We continue to advocate for integrity of emissions data. Successful adaptation and climate change mitigation will depend on having good quality emissions data; if emissions cannot be reliably measured, they cannot be effectively managed and reduced. Thee measurement of emissions is essential for the integrity of New Zealand's international emissions reduction commitments.
Further, we note the financial value of the NZETS market can be reasonably expected to significantly increase over the next few years as the unit price rises and the scope increases when agriculture is included. Given the expected increase in financial value of the NZETS, we do not consider the current self-assessment model to be appropriate going forward. As such, we also recommend that the Government implement assurance requirements over emissions data, similar to those found in Australia's National Greenhouse and Energy Reporting scheme.
We provided our submission on 28 February 2020.