Parliament has passed the Climate Change Response (Emissions Trading Reform) Amendment Bill.
The bill amends the Climate Change Response Act 2002 to improve certainty for businesses, make the New Zealand Emissions Trading Scheme (ETS) more accessible, and improve its administration.
Climate Change Minister James Shaw says New Zealand now has one of the world’s most ambitious frameworks for tackling the climate crisis.
The changes made by the bill include setting a cap on the total emissions allowed within the ETS. This is something the previous government had failed to do, leaving the scheme too weak to have any real impact on reducing our emissions.
Mr Shaw also says the bill includes a range of necessary rule changes that will incentivise New Zealand’s biggest polluters to invest in the transition to a clean, climate-friendly economy.
“Until now, the ETS has not fulfilled its primary purpose, which is to reduce emissions. Taking action to fix this puts us further ahead on climate action than many other parts of the world – and that’s even before you consider the huge progress we have made over the last three years,” says Mr Shaw.