A Labour government will fix the broken Emissions Trading Scheme as an urgent priority.

“New Zealand should be showing climate leadership; not going backwards as Christopher Luxon’s Government has done,” said Labour leader Chris Hipkins.

“The ETS is broken. The carbon price is too low to drive meaningful emissions reductions. Under National, climate pollution us the only thing that has got cheaper over the last three years.

“Current ETS rules also make it cheaper to plant exotic forests than to grow food. That doesn’t create jobs or help our economy.

“Labour will ensure the ETS Emissions Trading Scheme actually does what it is supposed to do and maintains a genuine price on emissions. We will restore credibility and certainty to the carbon market, generating revenues that can be invested in affordable energy and resilience.

“We will stop the short-term political tinkering that undermines business confidence and puts us all on the back foot.

“Labour is fully committed to the Paris Agreement and will put New Zealand on course to meet its targets. The Paris Agreement is essential for bringing countries together to address a problem affecting every country, every community and every generation. Walking away from it, as National and its mates are planning to do, would be giving up on our kids’ future and impose huge costs on our economy.

“We can’t afford another three years of National’s inaction on climate,” Chris Hipkins said.

“Labour will urgently review the ETS and move quickly to implement changes informed by this work,” Labour climate spokesperson Dr Deborah Russell said.

The review will:

·         identify changes to incentivise genuine emissions reductions rather than relying on offsets,

·         reconsider the role of forestry (as per PCE’s recommendation)

·         ensure the ETS supports New Zealand’s Paris targets

·         develop new rules to prevent whole-farm conversions.

·         new forestry registrations in the ETS will be paused while this work is completed (as per PCE’s recommendation)

“New Zealanders deserve a government with a plan - one that understands climate action and economic growth go hand-in-hand.

“Climate change is one of the greatest challenges we face, but it is also one of the greatest opportunities available to New Zealand. We can deliver cleaner and more affordable energy, gives businesses the certainty to invest, and help our farmers to compete in global markets by building on New Zealand’s reputation for world class sustainability.

“Labour is committed to protecting our economy and growing our economy – creating good jobs, bringing down household costs and strengthening our energy security,” Dr Deborah Russell said.