Emissions scheme could cost NZ up to $5b

NZ Herald Jun 23, 2010
New Zealand’s failure to cut greenhouse gas emissions has left taxpayers staring down the barrel of a Kyoto Protocol liability of at least $1 billion and possibly more than $5 billion, according to a book analysing National’s emissions trading system…On top of that, the ETS was so unfair in the way it distributed benefits to high emitters with political influence, while placing a regressive quasi-tax burden on households, that there was a risk it could undermine the public’s willingness to support a stronger regime in the future. Such was the scale of subsidies that only one in every five dollars charged under the ETS would become available to the Government to pay off the Kyoto liability. Households already bore half the total costs resulting from the ETS during its first five years while accounting for just a fifth of all emission. Households, small to medium industry, commerce and services and transport operators would pay 90 per cent of the costs resulting from the ETS during the first five years while being responsible for only 30 per cent of total emissions.