Treasury/Ministry for the Environment

Topic : Emission Trading Scheme.

Summary

The NZ emissions trading scheme is a major structural change to the NZ economy, with significant social and environmental consequences. This case study is about three aspects of this reform:

• The process of engagement – how we approached the government’s need for rapid and comprehensive consultation in a highly polarised environment? Grappling with the creation of property rights, major wealth transfers and equity issues between business, taxpayers, workers and consumers. The intervention logic behind a broad-based and broad-ranging initiative.
• A self assessment model – how to create a market out of “thin air”, reduce compliance costs and facilitate carbon trading?
• Environment as a driver of structural reform – taking sustainability to the core of government will mean that environmental issues will increasingly become a driver of economic and social change - what lessons can we learn from the NZETS?