Adding fuel to the fire: Undermining the ETS is poor policy

Hard on the heels to slashing climate reporting requirements, the government’s dismantling of the Emissions Trading Scheme and the role of the Climate Change Commission drags New Zealand from the leaders into the climate laggards category.

As a charity operating in the investment sector, Mindful Money sees the importance of predictable and transparent climate policy frameworks. Clear signals for future pricing of emissions are essential for investors who are making long term decisions. These signals should be guided by research, evidence and sound processes for public consultation. Instead, the government has taken a further step towards politicisation of policy through removing key roles for the Climate Change Commission.

Barry Coates, Mindful Money’s co-CEO commented: “The government's announcement to streamline the Climate Change Response Act is more like a way to undermine the purposes of the Act. The amendments remove crucial accountability mechanisms and consultation processes that companies and investors rely on for sound decision-making.

At a time when international investors are seeking good governance of climate policy and regulated reporting of climate data, these changes move New Zealand in the opposite direction. The simplified requirements for Emissions Reduction Plans (ERPs) remove critical detail that investors use to assess transition risks and opportunities in the New Zealand market, and the elimination of independent expert scrutiny through the Climate Change Commission erodes trust and credibility in future plans.

Barry Coates commented, “Our major trading partners and investors, such as Australia, EU, UK, Canada and China, are strengthening climate governance, reporting and accountability. Meanwhile, the New Zealand coalition government is weakening the framework for the transition to net zero that they promised to support. This threatens our trade relations, incoming investment and our international reputation. This is not good climate policy or sound economic policy.”

As the climate summit COP30 approaches, New Zealand’s international reputation is in tatters. Our credibility gap is growing. Our enviable reputation is being undermined through policy after policy – delaying carbon neutrality for government departments from 2025 to 2050, lowering the target for methane reductions, using Fast Track processes to promote mining and ignore climate impacts, pledging subsidies for LNG storage and removing fuel excise taxes.

Barry Coates concluded, “Policy changes by the New Zealand government reveal they are stuck in the fossil fuel past. While the transition to clean energy is accelerating internationally, creating new jobs, saving foreign exchange and reducing energy costs for consumers, New Zealand is being left behind. Our economic growth can be accelerated by boosting investment in renewable energy and electrifying our economy, as well as building resilience to climate impacts. In our era of climate change, good climate policy is also good economic policy.”

Contact:
Barry Coates
barry@mindfulmoney.nz
021 365 165

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