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Wednesday, November 20, 2024

Point of Order: Buzz from the Beehive - 20/11/24



Researchers make the case for a carbon tax while NZ brays about our ETS (and finds $10m for climate change fund)

The University of Auckland has drawn attention to a new study which emphasises the value of a carbon tax to effectively decarbonise the economy.

A carbon tax is the most effective way for New Zealand to cut emissions while supporting a stable economy, according to the study.

The researchers compare the effects of three environmental policies – carbon taxes, emissions trading schemes and emission intensity targets – on New Zealand’s economy. Their study also explores environmental impacts on the economy by factoring in how pollution spreads across regions.

They say that while all policies caused some short-term welfare losses, a carbon tax was gentler on New Zealanders’ welfare and wallets overall.

Unlike countries such as China, which introduced an environmental protection tax in 2016 alongside its Emissions Trading Scheme, the New Zealand government has not levied a carbon tax, especially for emissions from the agricultural sector, which is exempt from the ETS.

News of the study reached Point of Order at much the same time as we were studying the New Zealand Statement to the 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29), taking place in Baku, Azerbaijan.

Climate Change Minister Simon Watts presented the statement, which declares that New Zealand is committed to meeting our climate targets and doing our part to reduce the impacts of climate change. Good for us, eh?

It also mentions the ETS:

Pricing emissions is a powerful tool. The New Zealand Emissions Trading Scheme, the 2nd oldest in the world has the broadest sectoral coverage of any such scheme in the world.

Watts used the occasion to announce New Zealand will contribute NZ$10 million to the new Fund for Responding to Loss and Damage.

“New Zealand is joining the global effort to address the significant challenge of responding to loss and damage caused by the adverse effects of climate change, including from extreme weather events and sea level rise,” Mr Watts says.

The Fund for Responding to Loss and Damage was set up last year at COP28 to help developing countries that are particularly vulnerable respond to economic and non-economic loss and damage caused by the adverse effects of climate change.

The $10 million NZ is pitching in as half as much the $20.3 million being provided by the government to make structural upgrades at Rātana Pā near Whanganui and the Waitangi Treaty Grounds in Northland.

The statement and $10 million funding announcement can be found among the latest posts on the Government’s official website:

Latest from the Beehive

Speech

20 November 2024


New Zealand is committed to meeting our climate targets and doing our part to reduce the impacts of climate change.


The Government has released its second Quarterly Investment Report (QIR) which shows substantial work still to be done by agencies to improve investment reporting and meet the Government’s expectations.


Climate Change Minister Simon Watts announced New Zealand will contribute NZ$10 million to the new Fund for Responding to Loss and Damage while at the annual United Nations Climate Change Conference (COP29) in Baku, Azerbaijan.


The free ride for gangs is over when the clock strikes midnight tonight, with tough new laws officially coming into effect, Justice Minister Paul Goldsmith and Police Minister Mark Mitchell say.

19 November 2024


Legislation that will double the financial jurisdiction of the Disputes Tribunal from $30,000 to $60,000 has passed first reading in Parliament today, Justice Minister Paul Goldsmith.


Legislation that will specifically criminalise foreign interference and strengthen espionage offences has passed first reading in Parliament today, Justice Minister Paul Goldsmith says.


Transport Minister Simeon Brown has welcomed news that the NZ Transport Agency (NZTA) Board has approved funding towards pre-implementation and early works on the State Highway 1 (SH1) Belfast to Pegasus Motorway and Woodend Bypass Road of National Significance (RoNS).


Health Minister Dr Shane Reti says findings from the annual Health Survey highlight the need to continue driving better health outcomes for New Zealanders.


A renewed effort to get people to quit smoking will build on what has worked to date and target the groups who most need support, Associate Health Minister Casey Costello said today.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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