NEW ZEALAND, AUSTRALIA AND EMISSIONS TRADING

Emissions trading scheme sends prices up as Australia looks on
Ben Cubby, July 2, 2010 (The Sydney Morning Herald)

"The Australian government may have been unable to get its carbon trading plan through the Senate, but New Zealand started its scheme…and consumers were greeted with the promise of an instant price rise by electricity and fuel companies.

"The Kiwi scheme is similar to Australia's postponed carbon pollution reduction scheme and it also excludes greenhouse gas emissions from agriculture - an expedient move in a nation known for its many flocks of methane-producing sheep…Agriculture makes up nearly half the 76 million tonnes of greenhouse gases the nation produces each year, and is expected to to be included in the scheme in 2015."

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"Like Australia, New Zealand has made its pledge to cut emissions by between 10 per cent and 20 per cent by 2020 contingent on international developments. The debate about putting a price on pollution has also led to fierce lobbying from industries that will have to change when they are compelled to buy carbon permits.

"Fuel prices will rise by three or four cents a litre…[P] ower providers Contact Energy and Mercury Energy lifted their prices by over 3 per cent…The New Zealand Prime Minister, John Key, said companies faced court action if they falsely claimed the price rises to have been caused by the scheme."

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"Some climate scientists and economists in New Zealand have warned the scheme may include too many subsidies to industry, undermining the amount of emissions to be cut.

"Australia [will] be monitoring developments in New Zealand…[the new Gillard government postponed its carbon trading scheme to 2013 and said] Australia will need a price on carbon, but first…will need to establish a community consensus for action…The Australian scheme…was blocked by most of the opposition and Greens. In New Zealand the scheme was designed under the Labour Party and brought in an amended form by the conservative National Party."