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"New Zealand must play its part in the global effort to tackle climate change.  The Emissions Trading Scheme will play a very important role in our efforts," Helen Clark said.

"I thank New Zealand First and the Green Party for recognising the critical importance of this legislation, and providing support for the Climate Change (Emissions Trading and Renewable Preference) Bill.

"What has emerged from our discussions with New Zealand First and the Greens is a scheme which not only contains economic incentives to reduce New Zealand's greenhouse gas emissions, but also provides support for families and businesses to make the transition to greater sustainability.

"The agreement with New Zealand First and the Green Party includes a one-off electricity rebate for all New Zealand households, as well as a cash payment for those receiving New Zealand Superannuation, Working for Families tax credits, and benefits when the electricity sector enters the scheme in 2010.

"An energy efficiency fund, managed by EECA, will be set up next year to help targeted households reduce their energy costs through a range of initiatives, including installing better insulation and more efficient home heating.  This will be funded to the level of $1 billion over 15 years.

"A new contestable innovation fund of 150,000 emission units a year, is being established to support the introduction of innovative technologies which have the potential to reduce industrial emissions significantly.

"A new free allocation of units has been introduced for the fishing sector, which is equal to fifty per cent of the impact on fuel costs for a three year period.

"There will be no change to the 1 January 2013 date when the agriculture sector comes into the scheme.  To help prepare the sector for entry into scheme, the Government has developed with the dairy industry and fertiliser companies a Heads of Agreement.  This will involve industry and government working together to investigate and apply measures which can significantly reduce nitrous oxide emissions from the dairy sector over the next five years.

"The Government has also agreed to support work which would help reduce overall greenhouse gas emissions in the broader agriculture sector prior to entry into the scheme, and has set a target of achieving a reduction in greenhouse gases from the sector, of 300,000 CO² equivalent tonnes, by 2013.

"The Government will be encouraging research on, and experimentation with, a range of alternative technologies and farming practices, including low intensity farming.

"The Government has also agreed to have a National Policy Statement on biodiversity in place by 1 February 2011.

"We have agreed to strengthen the controls on the surrender of AAUs (Assigned Amount Units) to help ensure that only high-quality units will be traded in the scheme.

"We have agreed that the allocation plans for the industrial, stationary energy, and agriculture sectors will be referred to a select committee for consideration.

"Overall this package is about enabling New Zealand to take effective steps to reduce greenhouse gas emissions.

"Climate change is one of the greatest challenges facing our world.  It is important that New Zealand shows leadership and shoulders its share of the responsibility for dealing with it. 

"By making far-reaching and strategic changes to the way we live and work, we can reduce our greenhouse gas emissions while also maintaining a strong economy and comfortable lifestyle," Helen Clark said.

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