The government has done it again – an announcement of a plan that will add costs but do absolutely nothing to reduce emissions:
The proposed Emissions Reduction Plan is an emperor with no clothes as it won’t reduce emissions because of the way the Emissions Trading Scheme works, points out the New Zealand Taxpayers’ Union whose members and supporters made up the vast majority of submitters to the Climate Change Commission on the same plan last year.
“The Government’s approach to climate change is centred around making as many announcements as possible, with costly new interventions into Kiwis’ lifestyles and the economy, while ignoring the system that actually governs our net carbon emissions,” says Taxpayers’ Union spokesman Jordan Williams.
“Most of our emissions are capped and traded under the Emissions Trading Scheme (ETS). That means when the Government uses regulation to cut emissions from a particular source – say, petrol vehicles – carbon credits are simply freed up making it more affordable to produce emissions in other ways. That is why the UN advises countries against the very interventions this Government proposes when cap and trade is in place.”
“Even if the laundry list of regulations proposed in this plan did succeed in reducing total emissions, a Government-knows-best approach inevitably means blunt measures with unforeseen costs. For some businesses, their particular circumstances mean switching to electric heating or electric vehicles will involve inordinate cost.”
“The Government has the power to cut emissions at will by simply reducing the emissions cap, which would increase the cost of carbon credits and incentivise businesses and households to cut emissions in ways most practical for their individual circumstances. Ignoring the ETS and using a hundred different regulations to whack unfashionable sectors is divisive, costly, and cynical politicking.”
Using the ETS to increase costs will hit everyone and be hardest on the poor which makes it politically unpalatable, but it would reduce emissions.
What the government is imposing will increase costs but won’t reduce emissions.
Matt Burgess wrote about this last month and concluded:
. . .Next month, the government will commit tens of billions of dollars-worth of new emissions policies under its Emissions Reduction Plan. Nearly all of them will work under a binding ETS cap. As a result, they will not change total emissions by a single tonne. We will be no closer to our emissions targets, not by one gram. We will just be poorer. . .
This is exactly what’s been proposed – a plan that will impose higher costs on us all for absolutely no environmental gain.