There should be some rejoicing in farm circles today, after Environment Minister Nick Smith released a joint report by economic consultants NZIER and Infometrics.
The report was commissioned by the Ministry for the Environment and provided to the Emissions Trading Scheme Review Committee as part of its terms of reference.
Smith’s media statement emphasises the recommendation that a modified emissions trading scheme as the best way forward for New Zealand on climate change policy.
“The report highlights that the costs to New Zealand’s climate change policy are significantly greater if other countries do not put a price on carbon. This reinforces the Government’s policy of aligning our response more closely with other countries.
“The Government will await the report back from the Review Committee before committing to any decisions on the future of New Zealand’s ETS. The environmental and economic consequences of climate change policy are critical to New Zealand and a careful and considered approach is required.”