New Zealand's emissions trading scheme
Wednesday, 23 June 2010, 11:35 am
Press Release: Sustainability Council of New Zealand
Taxpayers Face $1.1 Billion Kyoto Liability After ETS Charges Paid
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New Zealand’s failure to reduce emissions to its Kyoto Protocol target means the taxpayer still faces a $1.1 billion net liability after all the ETS charges have been paid. The ultimate figure depends on future carbon prices and it could be as much as $5.7 billion, based on Treasury advice.
Years of narrow accounting, which had given the impression that the government was at various times in credit under the Protocol, has finally been abandoned – at least in part. This year’s Budget broke with the past by recording key deforestation liabilities on the books, thereby signalling the real cost of New Zealand’s 22% overshoot of its Kyoto target.