Discussion Paper on Measures to Reduce Greenhouse Gas Emissions in New Zealand Post-2012

New Zealand Ministry for the Environment, December 2006

Please enter your responses, save the completed form to your computer, and then email it as an attachment to climatechange@mfe.govt.nz or send it to Post-2012, Ministry for the Environment, PO Box 10362, Wellington.

This submission template is available as pdf and Word document to download.

Submissions are due by 30 March 2007

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(4) Longer-Term Climate Change Policy Development [Numbered headings in the submission template correspond with sections of the discussion paper.]

1. Do you expect international efforts to reduce greenhouse gas emissions to continue? If so, in what form?

2. Do you believe a price-based measure such as emissions trading, which gives emitters the responsibility for at least some of their emissions, could enable businesses to find the lowest-cost way to reduce emissions?

3. Would you prefer directive regulations to a price-based measure?

4. What, if any, pre-conditions need to be met internationally and/or domestically before a broad price-based measure such as a greenhouse gas charge or emissions trading was introduced in New Zealand?

(5) Policy Development on Devolving the Cost of Emissions

(5.1) Realising least-cost mitigation opportunities

5. Under what conditions should the government support or limit the use of domestic and international flexibility mechanisms by firms or sectors with emission reduction targets or obligations?

(5.3) Leakage and competitiveness issues

6. In the longer-term, should the same price of emissions apply across all sectors of the economy? If not, how could the stringency of emission targets be determined for different sectors?

7. What measures should the government consider for managing the international competitiveness impacts of its climate change policies?

8. How might the government set a threshold for acceptable levels of competitiveness-at-risk impacts for firms subject to international competition?

9. What conditions would justify removal of any measures to deal with competitiveness issues?

(5.4) Thresholds

10. How should the government define and enforce a threshold determining which firms or sites should be included in the scheme? For example, should a threshold be defined on an intensity or absolute basis?

11. How could the government design a threshold to minimise competitiveness and equity problems?

(5.5) Revenue recycling

12. Should revenues from climate change policy measures be returned to the economy through either general tax relief or funding for targeted activities? If you believe revenues should be returned to the economy through funding for targeted activities, which activities should be considered?

(5.6) Building capacity for strategic emissions management

13. What assistance would large direct emitters need to prepare for mandatory monitoring, measurement and reporting?

(6) Emissions Trading

14. Which sectors could and should be included in a New Zealand emissions trading scheme? Could this change over time?

15. What design conditions would be necessary for emissions trading to function effectively in the New Zealand context?

16. Which allocation methods would you support: gratis allocation, auctioning or hybrid allocation schemes? Why?

(7) Greenhouse Gas Charge

17. Would a broad greenhouse gas charge be an effective policy option for reducing emissions in New Zealand post-2012?

18. How should the rate of any broad-based greenhouse gas charge be set? Should it vary by sector, and if so, on what basis (the relative ease of mitigating emissions, the availability of alternative technology, and the effect on emitters’ decisions)?

(8) Other Regulatory Approaches

19. Is it desirable to apply RMA controls on greenhouse gas emissions because of their impact on global climate change?

(9) Emission Reduction Agreements

20. What conditions would be required for emission reduction agreements to be used as an element of post-2012 climate change policy?

21. What methods could be used to ensure that emission reduction agreements were sufficiently ambitious to meet government goals, and the commitments made would be met over time?

22. What process could be used to develop emission reduction agreements for major direct emitters?

(10) Comparison of Options

23. What national and/or international circumstances would favour emissions trading rather than greenhouse gas charges if applied broadly or more selectively across multiple sectors of the New Zealand economy post-2012?

24. Would a price measure be sufficient to achieve the following types of climate change-related objectives: accelerated uptake of highly efficient technologies, development and commercialisation of new technologies, fuel switching to low emissions or renewable energy sources, and reduced energy demand?

25. Under what circumstances should a regulatory approach be used in place of price-based measures such as emissions trading, a greenhouse gas charge or financial incentives?

(11) The Path Forward for Longer-Term Policy Development

26. What are your views on the indicative proposal for discussion?

Additional Comments:

Thank you. Please save the completed form to your computer and then email it as an attachment to climatechange@mfe.govt.nz, or send it to Post-2012, Ministry for the Environment, PO Box 10362, Wellington.

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