Review underway of role of NZ ETS in climate response
The Government is reviewing the New Zealand Emissions Trading Scheme (NZ ETS) to assess if changes are needed to provide a stronger incentive for businesses to transition away from fossil fuels, while also supporting greenhouse gas removals.The review of the NZ ETS follows advice from the Climate Change Commission. The Commission recommended that proposals be developed for strengthening NZ ETS incentives for gross emissions reductions. The review is also included in New Zealand’s first emissions reduction plan, (action 5.2.1), to help Aotearoa New Zealand meet its national and international climate change targets.Proactively released Cabinet papers outlining more detail on the review: