Ministers Reject Advice to Reassess Hundreds of Millions in Climate Subsidies
Ministers Reject Advice to Reassess Hundreds of Millions in Climate Subsidies
The New Zealand government has rejected advice to reassess hundreds of millions of dollars in climate subsidies to some of the country's biggest polluters.
The New Zealand government has rejected advice to reassess hundreds of millions of dollars in climate subsidies to some of the country's biggest polluters.
The subsidies mainly benefit five firms: Methanex, Fletcher Building, the Tiwai Point smelter, Ballance, and NZ Steel.
The subsidies mainly benefit five firms: Methanex, Fletcher Building, the Tiwai Point smelter, Ballance, and NZ Steel.
The subsidies were meant to be a transitional measure to shield firms from unfair competition from countries without carbon prices and climate targets.
The subsidies were meant to be a transitional measure to shield firms from unfair competition from countries without carbon prices and climate targets.
Climate campaigners have long accused the scheme of propping up pollution and giving heavy emitters a free pass to continue polluting.
Climate campaigners have long accused the scheme of propping up pollution and giving heavy emitters a free pass to continue polluting.
The Climate Change Commission said the risk of emissions moving overseas is real, but the current system threatens New Zealand's ability to meet its climate targets.
The Climate Change Commission said the risk of emissions moving overseas is real, but the current system threatens New Zealand's ability to meet its climate targets.
Thinktank Motu has published a report suggesting alternative solutions, including a carbon tax, a cap-and-trade system, or a green fund.
Thinktank Motu has published a report suggesting alternative solutions, including a carbon tax, a cap-and-trade system, or a green fund.
Economists argue that the incentives would work better if payouts were pegged to what competing countries are doing.
Economists argue that the incentives would work better if payouts were pegged to what competing countries are doing.
The subsidies have created a perverse incentive for firms to switch to lower-emissions technology, but only if it's cheaper to do so.
The subsidies have created a perverse incentive for firms to switch to lower-emissions technology, but only if it's cheaper to do so.
Climate campaigners argue that the government needs to be more transparent about the subsidies and their impact on the environment.
Climate campaigners argue that the government needs to be more transparent about the subsidies and their impact on the environment.
The government is expected to make announcements "this year", but the exact nature of the changes is not clear.
The government is expected to make announcements "this year", but the exact nature of the changes is not clear.