The NZ Emissions Trading Scheme has failed and should be replaced by a carbon tax, Green Party co-leader Russel Norman told the party’s annual conference yesterday [NZ Herald, Stuff]. Outlining the Green’s new Climate Protection Plan (pdf) Norman told delegates that the government’s mismanagement had “hollowed out and weakened [the ETS] to the point of redundancy, accelerated deforestation and driven up emissions.” If in government after September’s general election, the Greens would replace the ETS by a suite of policies built around a levy on greenhouse gas emissions, with revenues recycled to business and consumers through cuts in income taxes.
The key points of the new policy are (from the policy document):
- Set New Zealand on the path to be carbon neutral by 2050.
- Establish a Climate Commission to provide expert and independent advice to the government on: carbon prices, carbon budgets, and complementary measures to achieve carbon neutrality by 2050.
- Phase out the failed Emissions Trading Scheme and set an initial price on carbon:
$25 per tonne on CO2 equivalent emissions for all sectors except agriculture and forestry. Dairy emissions will pay $12.50 per tonne. Forestry will be credited at $12.50 per tonne. - Recycle all revenues raised from a carbon charge back to families and businesses through a $2,000 income tax-free band and a one percent company tax cut. A Climate Tax Cut. Households will be better off.
- Introduce a suite of complementary measures to support the rapid transition to a carbon neutral economy.
The tax and dividend scheme has been costed by independent economists BERL (report here). An average household will be over $300 better off per annum.
Continue reading “NZ Greens launch new climate policy: replace ETS with carbon tax and dividend”