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NZ Government Urged To Replace ETS With Carbon Tax

by Mary Swire, Tax-News.com, Hong Kong

20 March 2009

Calls have been made for New Zealand's government to replace the country's current Emissions Trading Scheme (ETS) with a carbon tax levy.

The calls were made at a recent parliamentary committee held to review the country's ETS and climate change policy.

According to a combination of experts from the Public Health Association, the Business Roundtable and petroleum company Todd Energy, replacing the current ETS with a carbon tax would simplify and stabilize the way in which emissions are controlled.

The ETS is due to commence in 2010.

Todd Energy's managing director Richard Tweedie believes that an ETS is not the most effective or reliable way of controlling pollution levels, and argues that the system is too "volatile" to meet the government's climate-change and financial targets.

Although a carbon tax proposal was turned down by the government in 2005, experts are hoping to change its opinion before the ETS commences in 2010.

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