ETS – Page 12 – Hot Topic

The NZ ETS Review 2011: Clear signals for business as usual

Simon Johnson’s guest post offers prompt comment on the ETS review.

Minister for Climate Change Issues Nick Smith has finally released the delayed report of the NZ Emissions Trading Scheme Review 2011. The 98-page report is titled Doing New Zealand’s Fair Share, The Emissions Trading Scheme Review 2011.

The review panel chaired by former Rogernome David Caygill gave their report to Smith on 30 June 2011. Two and half months later and one week into the Rugby World Cup, Smith has let the report out into the world.

From the title of his press release, Slowing of ETS recommended by Review Panel, I think Smith is pretty happy with the report. It also uses some of Smith’s favourite phrases; such as “Doing our fair share” and balancing emissions reductions with costs to businesses.

“The Panel acknowledges there needs to be an appropriate balance between managing these short-term costs and providing a clear long-term direction. Given the current international uncertainty and the challenging state of the economy, this means there should be measures in place which ensure the increase in the costs of the ETS occurs at an appropriate pace.” Continue reading “The NZ ETS Review 2011: Clear signals for business as usual”

Charting unexplained territory in the NZ ETS Report

So far, I have posted on the comprehensiveness of the NZ ETS vs the Australian Clean Energy Future ETS, the Kyoto chart junk in the Report on the New Zealand Emissions Trading Scheme, and the over-supply of the New Zealand Units in 2010.

This post mixes two of these ideas; searching out bad charts and looking again at the supply side of the NZ ETS market, how many New Zealand Units were allocated for free to emitters and businesses.

The Report on the New Zealand Emissions Trading Scheme provides in Figure 5 a pie chart of the number of New Zealand Units (NZUs) surrendered by emitters.

Although the pie chart is Kaiser Fung’s least favourite type of chart, this pie chart isn’t too bad. There are a manageable number of categories; only five; and no 3-D effects. The key point is clear from the pie chart, that about two-thirds of NZUs surrendered were purchased from foresters. Also the chart follows the Ministry for the Environment usual practice of providing the original data underneath so you can do you own chart. I did a bar chart of the data, re-labelling the “Other” NZUs as “Free NZUs”. Continue reading “Charting unexplained territory in the NZ ETS Report”

The over-allocated units in the Report on the New Zealand Emissions Trading Scheme

Simon Johnson continues his series of guest posts looking at the Australian and New Zealand carbon pricing schemes.

Finally I have got past the chartjunk and I have read the Report on the New Zealand Emissions Trading Scheme that Minister for Climate Change Issues Nick Smith released on 1 August 2011.

Perhaps the first point to make is that the NZ ETS has now been though a complete compliance period, the six months from 1 July 2010 (when energy and industry entered) to 31 December 2010, where both buyers (emitters) and sellers (foresters) of emissions units were in the NZ ETS market. So we should be able to make an assessment of how the NZ ETS is working.

The same underlying information, emissions units issued and surrendered in the 2010 year, has already been available from the “central bank” for emissions units – the NZ Emissions Unit Register, run by the Ministry of Economic Development. The Climate Change Response Act requires certain information on emissions trading to be disclosed annually. The Ministry for the Environment’s Report on the New Zealand Emissions Trading Scheme is really this same trading information with some, ugh, “100% Pure” photo shoot pictures, quite a few junk charts and several text-boxes. Continue reading “The over-allocated units in the Report on the New Zealand Emissions Trading Scheme”

The NZ ETS Review 2011 and the Minister’s Kyoto Chartjunk

In a previous guest post Simon Johnson looked at the new Australian carbon pricing scheme. Here he begins to examine the report on how the New Zealand scheme is faring.

A few days ago I was intending to carefully read the Report on the New Zealand Emissions Trading Scheme that Minister for Climate Change Issues Nick Smith released last Monday and write a considered review.

However, I only got as far as Nick Smith’s foreword on the the third page when I got stopped in my tracks by Figure 3, a misleading piece of chartjunk if I ever saw one, Its about New Zealand being on target to meet its obligations under the Kyoto Protocol. Here it is. Continue reading “The NZ ETS Review 2011 and the Minister’s Kyoto Chartjunk”

The Trans-Tasman carbon test

Hot Topic reader and regular commenter Simon Johnson (aka Mr February) was spurred by the discussion here about Australia’s new carbon pricing policies to dig into the details. In this guest post he looks at how the new Aussie scheme compares with NZ’s Emissions Trading Scheme…

I have to admit I did rush to conclude that the Australian carbon pricing scheme would be a “leapfrog” ahead of the NZ Emissions Trading Scheme. I also admit that I generally think the NZ ETS is worse than nothing as a policy to reduce GHG emissions. So of course the Australian scheme must be more effective!

Now that I have actually read Julia Gillard’s carbon pricing proposal I can offer a slightly more considered opinion. The carbon price scheme has a name which we should be using; Securing a Clean Energy Future. The full document is Securing a Clean Energy Future, The Australian Government’s Climate Change Plan, Commonwealth of Australia 2011, ISBN 978-0-642-74723-5.

First of all, the ‘Clean Energy Future’ is not a carbon tax. It is a cap and trade emissions trading scheme with a safety valve. Page 25 says:

“Large polluters will report on their emissions and buy and surrender to the Government a carbon permit for every tonne of carbon pollution they produce.”

That’s very much an emissions trading approach, but with a fixed carbon price for three years. The price is $AU23 per tonne from 1 July 2012, then $AU24.15 in 2013-14 and $AU25.40 2014-15 (p 26). From 1 July 2015, the carbon price will float within and upper and lower ceiling with the Government setting an overall ‘Cap’ or limit on GHGs (p 27).

Continue reading “The Trans-Tasman carbon test”