Under the Kyoto Protocol, the New Zealand Government agreed to reduce our greenhouse gas emissions back to 1990 levels by 2012 or pay for any excess. The ETS was selected as the least-cost way of putting a price on emissions and creating an incentive for all of us – especially businesses and consumers – to change behaviours.
The purpose of the scheme is to reduce the amount of greenhouse gases emitted in NZ, by charging those who emit greenhouse gases while carrying out certain activities.
Despite the ETS being a relatively new system, we are already seeing the benefits of putting a price on carbon. It is estimated that New Zealand’s emissions will have reduced by approximately 19 million tonnes by next year enabling New Zealand to meet its 2012 Kyoto target. Without the ETS, it is possible we may exceed our Kyoto target by 11 million tonnes.
For more information about the ETS, climate change and the Emission Unit Register go to the following websites