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New Zealand Emission Trading Scheme |
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New Zealand expects to join the leading economies of the world in fighting the global war on carbon emission, by introducing the emission trading scheme bill or ETS. However, opinions differ about the nature of the bill’s implementation.
The Emissions Trading Group of the Ministry of Environment in New Zealand is on its way to introduce the emissions trading scheme. The ETS Bulletin 8 of the Ministry of Environment lays down the regulations related to New Zealand Emission trading scheme. The objective is to meet the emission target laid down by the Kyoto Protocol and be at par with other Global economies in issues related to greenhouse gas emission, and particularly carbon emissions.
The Pros and Cons of New Zealand Emissions Trading Scheme
The introduction of the Emissions trading scheme has become a widely debated issue ever since its introduction. The regulations, once formalized, will probably enable New Zealand to come close to its target as ascertained by Annexure B of the Kyoto Protocol. It will moreover allow customers to adjust themselves to a world that is growing increasingly conscious about carbon and greenhouse gas emission. However, there are still raging debates about the regulations and the modes of its implementation. New Zealand’s unique geographical position and economic composition is largely responsible for it.
New Zealand is largely agricultural. Unlike most members of the European Union, emission from agriculture in New Zealand accounts for a whooping 50%, considerably larger than the international average of 7%. That implies that a considerably small amount of emissions come from energy emissions, a meager 23% as compared to the global average of 63%. This makes most energy replacement policies related to industrial emission inapplicable to the New Zealand scenario. New Zealand has tried to counter this feature by placing the liability of forest carbon and deforestation directly on the landowner.
New Zealand has a very high percentage of renewable electricity generation, as compared to renewable thermal generation. New Zealand’s geographical position makes it impossible for the country to link its electricity system to another country. As such, the cost of renewable energy generation is very high in New Zealand. The existing modes of transportation can also hardly be replaced. Therefore, the target of deriving 90% of electricity from renewable sources can also turn into an economic liability on the nation according to many.
While many oppose the move to include agricultural emission and forest carbon within the scheme, others have expressed concern that the heightened economic liabilities can come down hard on the steel, aluminum, and paper and pulp industries.
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