Labour wants to change ETS

Labour is promising to prioritise climate action by reviewing and implementing changes to the Emissions Trading Scheme (ETS).

Labour leader Chris Hipkins says the current carbon price is too low to drive meaningful emissions reductions.

“Under National, climate pollution is the only thing that has got cheaper over the last three years,” he says.

“Current ETS rules also make it cheaper to plant exotic forests than to grow food, that doesn’t create jobs or help our economy.”

Hipkins says Labour would ensure the ETS maintains a genuine price on emissions.

“We will restore credibility and certainty to the carbon market, generating revenues that can be invested in affordable energy and resilience,” he says.

Labour says it remains committed to the Paris Agreement and would put New Zealand on course to meet its targets.

“The Paris Agreement is essential for bringing countries together to address a problem affecting every country, every community and every generation,” Hipkins says.

Labour climate spokesperson Deborah Russell says Labour would review the ETS and would move quickly to implement changes.

The review would identify changes to incentivise genuine emissions reductions rather than relying on offsets, reconsider the role of forestry, and ensure the ETS supports New Zealand’s Paris targets.

It would also develop new rules to prevent whole-farm conversions and new forestry registrations in the ETS would be paused while this work is completed.

“New Zealanders deserve a government with a plan,” Russell says. “One that understands climate action and economic growth go hand-in-hand.”

“We can deliver cleaner and more affordable energy, give businesses the certainty to invest, and help our farmers to compete in global markets by building on New Zealand’s reputation for world class sustainability,” she says.