Transcript NZ ETS Presentation for Thai

New Zealand Emissions Trading Scheme
Review 2015/16
NZIF Conference
August 2016
1
The Paris Agreement
» NZ will ratify the Paris
Agreement this year
» Our target is a 30% reduction
below 2005 levels by 2030
» Commits us to this emissions
reduction target, and we’ll
need to increase ambition for
future targets
2
How we’ll meet our Paris target
» We’ll need to look across the board for emission
reductions, including:
» Domestic reductions
» necessary to ‘bend the curve’
» Domestic forestry
» every tonne delivered through forestry avoids the
need to purchase a reduction from overseas
» International units
» Environmental integrity will be crucial
3
The task at hand…
Domestic reductions,
domestic forestry and
int. purchase
4
Key opportunities to help us get there
» NZ ETS review- more on this shortly
» Ministers have announced expert groups
» Biological Emissions Reference Group
» Adaptation Reference Group
» Climate Change Forestry Reference Group
5
NZ ETS review objectives
» Focused on getting the NZ ETS fit for purpose to
meet our Paris target
» The scheme needs to encourage long-term, low
emissions investment
» To do this we need to promote confidence and
stability in the scheme
6
NZ ETS review process
» Stage I concluded – 1 for 2 is being phased out
» Stage II – submissions analysed, Minister
deciding on next steps
» Range of forestry matters being considered:
» Some structural e.g. forestry accounting
» Some operational e.g. reducing compliance
costs
» Further sector engagement will be needed
7
Forestry – what we’ve heard
» “The key points for us in terms of the scheme are
that it needs to provide more certainty.
[Uncertainty] is discouraging the planting of
more trees”
» “NZU prices under $15 have nominal impact
upon our decisions, prices over $15 encourage
us to consider carbon trading of our units, or
further land purchase for forestry development”
8
This has reconfirmed that…
» Policy uncertainty adversely affects investment in
forestry
» Current NZU prices are increasing interest in
forestry participation
» 3 months at $18 won’t by itself get trees in the
ground
» Forestry is a long-term game
9
What else can we do?
» What do you see as opportunities for more
planting?
» What do you see as the barriers to more
planting?
» How can we best target our forestry policies?
e.g. NZ ETS, PFSI, AGS
» Have we got the mix right between water,
climate, and erosion policy?
10
Thank you
Kay Harrison
Director Climate Change
Ministry for the Environment
[email protected]
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