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New Zealand's Emissions Trading Scheme reforms target transparency, compliance

Source: Xinhua| 2019-05-16 16:13:41|Editor: xuxin
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WELLINGTON, May 16 (Xinhua) -- The second set of improvements to the New Zealand Emissions Trading Scheme (NZETS) have been announced to further encourage greenhouse gas emissions reductions and increase forestry planting, New Zealand's Minister for Climate Change James Shaw said on Thursday.

The latest changes will improve transparency within the project, increase rates of compliance with the scheme, and pave the way for robust auctions.

It would also ensure that the fixed price option is removed no later than the end of 2022 and enable a price floor to be added to the NZETS if necessary in future, Shaw said in a statement.

From 2021, changes designed to increase the transparency of the project will let the public access more information about the scheme, including the emissions of individual NZETS participants, Shaw said.

"It's critical for public trust in the NZETS that information is readily available," he said, adding it is also crucial that participants comply with their obligations.

The auctions, scheduled to begin in late 2020, will also be strengthened by these changes.

"An auction monitor will minimize anti-competitive behavior and promote fair access to auctions," said Shaw.

Both sets of improvements to the NZETS and further decisions expected in the coming months on industrial allocation will form a single bill to amend the Climate Change Response Act 2002, the minister said.

The parliament will consider this bill alongside the Climate Change Response (Zero Carbon) Amendment Bill, which was introduced to the parliament last week and is expected to pass into law at the end of this year, he said, adding that both bills will support New Zealand's aim of reducing greenhouse gas emissions to levels that help limit global warming to 1.5 degrees centigrade above pre-industrial level.

The public will have an opportunity to provide feedback on the bill when it is referred to the select committee.

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