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Friday 3 September 2021

New research documents challenges with industrial free allocation in the NZ ETS

The following press release was issued by Motu on 3 September 2021.  

A new paper from Motu Research documents why the current approach to industrial free allocation under the New Zealand Emissions Trading Scheme (NZ ETS) is outdated, poses high costs to Kiwi taxpayers, could make it harder to meet our 2050 climate change target and raises fairness issues across sectors.  

These issues underpin the government’s current consultation on reform options to industrial free allocation open until 17 September 2021. This paper presents further reform options the government and stakeholders could consider.