THE ETS AND WHY IT MATTERS
New Zealand’s emissions trading scheme is often described as NZ’s” key policy tool for reducing emissions and meeting our emission reduction targets”.
However, the ETS suffers from a number of design flaws and limitations that prevent it being effective as a carbon pricing and reduction mechanis
Emissions Trading Scheme Litigation
We successfully challenged decisions made by Cabinet and the Minister of Climate Change on NZ’s Emissions Trading Scheme, New Zealand’s main climate policy lever.
We were successful in our arguments that the Minister made fundamental mistakes when setting new price and unit settings. Our case resulted in the price of carbon under the ETS restoring and adding $3B to the value of carbon in the market
Judgment, 13 July 2023
Statement of claim, 9 May 2023
Submission on the proposed changes to NZ ETS limit and price control settings for units, 6 October 2022
Presentation by Dr James Every Palmer KC summarising our successful Judicial Review of the Emissions Trading Scheme settings
3 August 2023
LCANZI Committee member and litigator, Dr James Every Palmer KC, gave a short summary of our successful Judicial Review of the Regulations which set the number of additional Emissions Trading Scheme (ETS) units available over the next five years and imposed various price restrictions. The Regulations are referred to as the Climate Change (Auctions, Limits, and Price Controls for Units) Amendment Regulations 2022 and were made in December 2022. The judgment resulted in the Minister for Climate Change reconsidering the unit limit and price control settings for 2023 to 2027. The amendments mean that the supply of units will now be in accordance with our emissions budgets, and the changes will help reduce the large stockpile of existing units. You can read more about the details of the case here. In this clip James set out the factors that resulted in the Judicial Review being successful.
Emissions Trading Scheme policy submissions
Article: Emissions Trading Scheme won’t achieve needed cut in emissions, 4 March 2020
Submission: Reforming the NZ ETS: Proposed Settings, 28 February 2020
Submission: Designing a governance framework for the New Zealand Emissions Trading Scheme, 17 September 2021
Submission: Reforming industrial allocation in the New Zealand Emissions Trading Scheme, 17 September 2021
Submission: Managing exotic afforestation incentives in the New Zealand Emissions Trading Scheme, 22 April 2022
Submission: Proposed changes to NZ ETS limit and price control settings for units for 2022, 6 October 2022
Submission: National direction for plantation and exotic carbon afforestation (NESPF), 18 November 2022
Submission: He waka eke noa, pricing agricultural emissions, 18 November 2022
Submission: Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Bill, 6 April 2023
Submission: Annual updates to the NZ ETS limits and price control settings for units 2023 (consultation paper), 16 June 2023
Submission: Te Arotake Mahere Hokohoko Tukunga Review of the New Zealand Emissions Trading Scheme (discussion document), 11 August 2023