Helping to Save the World!
08:19:03 PM - 2007-10-22
NEW ZEALAND'S KYOTO PROTOCOL!
Now is the time to start helping to save the world for our future generations.
Start making a change today, it will pay off for the future tomorrows.
So it is not too early to start learning about Kyoto Protocols
New Zealand Emissions Trading Scheme (ETS) will start next year and while there are many questions, the farming sector has until 2013, but it is never to early to start protecting our and our family future for the years to come.
(1). Why is the scheme being introduced? Under the Kyoto Protocol NZ becomes liable to pay for its greenhouse emissions above 1990 levels from next January. New Zealands liability in the five years to 2012 (the first commitment period) is estimated to be 45-5 million tonnes costing about $682 million at a carbon price of $15/tonne.
Without a (ETS) emissions are expected to increase to around 65 million tonnes.
Our Government has chosen a cap-and-trade system.
(2). What is a cap-and-trade system? The cap-and-trade systems create a financial incentive for emission reductions by assigning a cost to polluting. In NZ case, the government will establish a "cap" that limits emissions to a level lower than the current emissions of a designated group of around 200 big firms, such as energy, oil, steel, aluminium, paper and power companies. The emissions allowed under the cap are then divided into individual units - one NZ unit will equal one tonne of emissions - that represent the right to emit that amount.
Because the emissions cap restricts the amount of emission allowed, units that give a company the right to emit take on financial value. Companies are free to buy and sell units in order to continue operating in the most profitable manner available to them.
So these able to reduce emissions at a low cost can sell their extra units to companies facing high costs.
(3). Where do the New Zealand units come from? The Government will gift units up to the cap or emitters can buy units from other participants, such as forest owners who earn units for the trees they plant.
Internationally, the NZ ETS will link, subject to some restrictions to other emissions trading markets operating under the Kyoto Protocol. NZ Units will be fully comparable to Kyoto-compliant units in the international market.
All these is still subject to the Government consulted on policy earlier this year and from now to the end of November will discuss options for the "core design details" with interested parties such as industry, consumer groups, NGOs and Maori.
(4). How will the ETS be administered? Inland Revenue will record ownership of units in a central registry, which will operate a bit like internet banking. Participants will be expected to monitor their own emissions, but audits and inspections will verify compliance.Participants will face penalties for non-compliance.
There is no time like right now to start helping to protect the world for our future generations.
Elsie Hagley |
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