Smith announces ETS review; 2 farmers on review panel of 6; Fed Farmers welcomes review and wants Ag emissions excluded

Smith announces ETS review; 2 farmers on review panel of 6; Fed Farmers welcomes review and wants Ag emissions excluded

See full statement below from Climate Change Minister Nick Smith:

Climate Change Minister Minister Nick Smith today announced the panel and terms of reference for the review into the emissions trading scheme to ensure it is meeting its purpose of reducing emissions at least possible cost and that New Zealand is appropriately pacing itself on climate change relative to its key trading partners.

“All the international evidence confirms that pricing emissions is the most efficient way of addressing climate change. This review is not about whether we have an ETS or not, but about the important operational detail and the pace of its implementation to strike the right balance between New Zealand’s economic and environmental goals,” Dr Smith said.

“The review is to be chaired by David Caygill who brings a huge amount of public policy experience as a former finance minister, trade and industry minister and Chair of the Electricity Commission.”

Other members of the panel include: 

* Julia Hoare, a chartered accountant at PricewaterhouseCoopers specialising in carbon markets, and an adviser to the special select committee on the ETS

* Chris Karamea Insley, a company director with specialist knowledge of forestry, a Scion board member, with tikanga Maori knowledge, fishing interests and a sound understanding of the Treaty of Waitangi

* Tom Lambie, a dairy farmer and former President of Federated Farmers and currently Chancellor of Lincoln University § David Russell, former Chief Executive of the Consumers Institute § Geoff Thompson, a lawyer and consultant at Duncan Cotterill, with specialist knowledge of forestry aspects of the ETS 

* Dr John Wood, Pro-Chancellor of the University of Canterbury, former Ambassador to United States, Japan, Germany and Iran, and now a small scale sheep and beef farmer.

“The ETS review team will be providing the opportunity for public submissions,” Dr Smith said. “I have also consulted with Australian Climate Change Minister Greg Combet on interactions between Australia’s Multi Party Committee on Climate Change and the ETS Review Group. We remain of the view that a close relationship between New Zealand and Australia on climate change policy continues to make sense for both countries.

“New Zealand’s climate change policy is in good shape with our ETS up and running, new investment occurring in forestry and renewable energy, and complementary programmes delivering record numbers of insulated houses and solar water heating systems. However, we need to keep a close eye on international developments and how the ETS is working in New Zealand to ensure we keep doing our fair share on climate change at least cost to consumers and businesses.”

See the full terms of reference here.

Here is the full statement from Federated Farmers welcoming the review:

Federated Farmers welcomes today’s announcement of the panel members that will be chairing the Government’s Emissions Trading Scheme (ETS) review and will be pushing to keep agricultural emissions out. “It’s important the review panel asks the right questions about how we are managing our emissions and how it compares to what our trading partners are up to,” says Don Nicolson Federated Farmers President.

“This is a good time to stop and do a stocktake of where we’re at with our ETS. In a world stuck in economic crisis these types of schemes have definitely gone on the backburner.

“Its time for our politicians to accept that we are alone in instigating a comprehensive, all sectors, all gasses ETS and we hope this review will reflect on this fact.

“Our Government has just announced an astonishing $15.6 billion cash deficit. How can we justify spending $1.06 billion on an ETS tax that not only raises the cost of living for every New Zealander, but funnels our capital offshore and will make no appreciable difference to our total emissions?

“New Zealand’s global emissions are apparently 0.2 percent on a world scale. As for followers, it's just us and the European Union. Even then, the EU scheme doesn’t count whole sectors, like agriculture.

“We need to find a balance between environmental responsibility and not imposing crippling costs on farmers.

“Much has been made of the UN Cancun climate change talks a week ago but there remains no successor treaty when Kyoto expires in 2013. “From the looks of it there’s little global appetite for agriculture being included in any successor treaty.

Nick Smith’s has pledged to keep biological emissions out of the ETS if our trading partners don’t follow suit. Federated Farmers wants the review to put that pledge in writing.

“More worrying is that we still haven’t even determined how we’ll measure the ETS as being a success or failure. We’re taking a multi-billion dollar gamble on a policy the rest of the world isn’t following. “Federated Farmers believes, as it has since 1985, that spending money on research leads to efficient production systems and therefore efficient use of resources. The Global Research Alliance on Agricultural Greenhouse Gases as well as our other research units fit the bill.

“The emerging international consensus to fund research into clean energy, helping developing economies grow economically, surely a fine ambition in a world with growing needs,” Mr Nicolson concluded.

Here is The Greens' view on the announcement:

The Government’s plans to have a one-sided review of the Emissions Trading Scheme (ETS) can only lead to further weakening of an already weak scheme, Green Party Co-Leader Dr Russel Norman said today.

Dr Norman was responding to the Government’s announcement of a panel to review the ETS two days before Christmas.

“The Government has set up a one-sided panel to review the ETS. Talk of ‘balance’ is nonsense.

There is not one single representative of the environment on their panel, but the polluting industries are well represented,” said Dr Norman.

“It’s inevitable an already weak ETS will be weakened further as a result of this review. Not a happy Christmas present for our kids who will inherit the climate chaos left by the Key Government.

“The review will also create further uncertainty for businesses planning to do the right thing and respond to climate change. In economic terms, they’re weakening the price signal. This is not the way to run a smart green economy.

“The review is yet another sign this Government is unable to manage the economy for our longer term interests. Business works best with certainty. The uncertainty created by this review will see decisions involving major levels of capital investment simply postponed.”

The review comes just a year after National significantly weakened the ETS, effectively increasing the subsidies paid to carbon polluters — costs borne by the tax payer.

“There are many ways for New Zealand to respond to the looming threat of climate change. We can invest in clean technologies and make the shift to a clean economy with lower emissions,” said Dr Norman. “And we can reduce our greenhouse gas emissions, something successive Labour and National Governments have consistently failed to do. “The best way to safeguard our future prosperity is to take action on climate change now,” Dr Norman said.

(Updated with Greens comment, Federated Farmers comment and full terms of reference attached)

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Just get rid of the daft dopey thing. Smith and Key both lamblasted it in opposition and promised not to do anything until our trading partners did, at the moment it is a great big subsidy scheme for (mostly overseas owned) foresters of which a fair few are in Smiths Nelson electorate.

Even though the Northern Hemisphere are basking in the latest bout of global warming there is not a chance they will introduce a comprehensive ETS. are right Pongo; it is sham.

I own a native forest in Northland (for conservation). It takes in about 10 times as much carbon each year as a pine forest (according to Landcare research).

Amount of carboin credits we get for taking in carbon = zero. Pine forests, and maori benefited; and re-planted land get carbon credits. Those actually taking in the most carbon are left out. And as you said Pongo, most of Pine forests offshore owned. Up in Northland they are owned by the Japanese. They will be getting paid out from NZ.

Likewise the other side of the coin, with some of those paying for carbon emissions, the poor old Farmers have to start paying soon. We're the only country in the world calculating emissions from farm animals. My farmer neighbour's wife up North says "we just can't afford it. I don't know how we'll survive". [Loopy stuff thanks Nick Smith].

A politcal sham...terms of reference look like they'll gaurantee continuation of reference to anything sensible e.g. "who takes in carbon gets paid...who emits carbon has to pay"..."removal of non-standard / controversial carbon emission sources [farming]


And on the same day NIWA has retracted its temperature record, having to admit they all made it up with unscientific, not peer-reviewed upward adjustments.

No global warming in NZ since 1960.

Nothing to see here, move on with the ETS.

...thanks Berend...goodness gracious, what a giant debacle....apart from Nick Smith's hamfisted sham...The government's created $20 billion of property rights under ets (ets credits / liabailites), and there's been no warming in NZ for 40 years....

Climate change is natural! Carbon is not the problem! TOO MANY PEOPLE is the problem

What we need is tax on children! SERIOUSLY!

Carbon and CO2, the most important element and gas required for ALL life to exist now becomes the NEW evil to impose taxes on us ALL

Fossils fuels are based on an 100% natural resource

Nick Smith is a mug and seems to think we are also


You need to refine your statement a little, the people there are too many of is power hungry socialist politicians like the current lot infesting the halls of Parliament. Irrespective of what their traditional fundamental beliefs or missions, whore themselves in the interests of prolonged power, to the detriment of the populace. Instead we have a bunch of hypocrits who think nothing of assaulting the  populace's liberties, wealth and trust.

good luck getting their thieving fingers out of the wallets of the populace.

Who is representing everyday kiwis on the panel????? 

A successful ETS needs CERTAINTY otherwise people won't invest in carbon-minimising activities. Vague reviews don't help.

Other people's money for doing stuff much in total...we will never know...but you can bet the 6 appointed and annointed will claim it's a really important thing they are doing and important things take time...lots of time....Harhaaahahahaaahah

Radiata pine grows much faster than native species (that's why people plant it) so it's difficult to see how native forest could be sequestering carbon faster 10 x faster than exotic.

I had a read of the NIWA summary of the review of the temperature record, the changes are actually pretty minor and actually validate Jim Salinger's original methodology. The so-called Climate Science Coalition's press release is ridiculous. 

Radiata Pine is crap. Go here to see what should be planted.....

Today we should be reading about the ten thousand unemployed youth involved in replanting these species by the square mile every day everywhere......too much trouble to organise...just hand out the borrowed money...who gives a shite.

Ever planted a totara seedling , and watched it " grow " ........... Man , they're slower than test cricket . ....... I put 12 around my property ............ Painful to watch . The rimu and kaihikitea however , they did get a wiggle on .

Trouble with you fingers.....Totara grow like weeds where I am...the trick is shelter, warmth and water. They slow down after about twenty years and don't develop the heart wood for yonks.

Not hard to organise it. Boot a few bums at doc and knock some heads at winz....have the bloody seedlings underway inside a year...wake the army up and have them manage the planting and shoot the possums...then sit back and wait for 200 years...hey presto a viable export industry with legs...made of wood.

Paul McCartney's ex would love you  ;  an export industry with legs ............. A nice totara pin , and you could have her , Wolly ! .............. Ooooooooh Heather honey , I have absolutely nothing against you , and neither does your right  leg ........................

Beetles and wood do not mix well Gummy!'s a thought...what are the medical properties within the flora to be found in NZ?..............anti cancer creams anyone....might be a better return than a bike track!

Favour 'riparian strip' planting around dairy land - maybe even a teeny weeny pollution tax for methane to help the funding.... sorry, a step too far there.


....... Now you're starting to talk sense , Malarkey . .......... We had faith in ewe . ........... Well done , buddy . Keep up the good work ........ Wanna borrow the Gummy-Bear-Boots and a pitchfork ?

Funny thing is Gummy...if Malarkey invested in a farm...chances are he would be roaring with the best on the other side of the fence.

You forgot "This country would be nothing without us", "If you don't like farming piss off out of New Zealand", and "This country owes farmers".

Wolly : Excellent suggestion ! .............. We should run that past Kunst . ..... Might keep the lad busy for awhiles ........

I think Walter is already into it Gummy...he's been spotted down at the foreshore, bum up head down looking for crabs and stuff.

China has just announced new 5 year plan to double thermal read coal power plants.

Just get rid of the dam fool piece of legislation.

Taxing our export earners right now is unbelievable in it's stupidity.


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