EXCLUSIVE: Business says no to carbon trade hobbles

28 August 2009

New Zealand business leaders and decision makers want free trade in carbon units and oppose a price cap, a new survey shows.
They also oppose supporting heavy emitters at a cost to other sectors, including forestry, and want agriculture covered by the scheme.
The Government is understood to be considering a price cap on units as part of a review of emissions trading scheme.

But a new ShapeNZ survey for the Business Council For Sustainable Development shows that 52 per cent of senior decision makers support an international trade without a cap, while just 18 per cent support a cap and ban, as provided for under the proposed Australian scheme.

The survey, of 1118 respondents including 205 senior business, professional and Government decision makers, was taken this week, and has a margin of error of plus or minus 2.9 per cent.

It shows that there is support for providing large emitters with free credits for longer as part of harmonisation with an Australian scheme (44 per cent support compared to 23 per cent oppose).

But support falls away if it means that it will cost taxpayers and the forestry sector money, with 56 per cent of senior decision markers (and 45 per cent of all respondents) opposing a price cap on emissions in New Zealand if this means that fewer carbon-sink forests will be plants, compared to just 22 per cent support from decision makers and 18 per cent from all respondents.

Even National Party supporters (40 per cent) oppose a price cap it if means less forestry planting, just 19 per cent of National Party supporters said they would support a price cap under those circumstances.

There was some support for a cap on emissions prices if means that New Zealand companies and their workforces are protected by lower carbon prices for longer (29 per cent for, 26 per cent against), but not if it means the bill falls on taxpayers.

A majority of senior decision makers (76 per cent) and overall respondents (62 per cent) oppose a cap subsidising the carbon bills of heavy emitters, compared to support of just 5 per cent and 7 per cent respectively.

There is opposition to phasing out assistance to large emitters more slowly as part of harmonisation with an Australian scheme if it means an extra cost to taxpayers of a billion dollars over five years.

Fifty-seven per cent of senior decision makers (51 per cent of all respondents) said they?d oppose this, compared to 14 per cent who support it (13 per cent of all respondents).

The majority of senior decision makers (57 per cent) believe that agriculture should come into the scheme from 2013, as provided for under the current ETS, while 25 per cent oppose a 2013 entry.

When asked if they supported or opposed farmers being given free credits before they fully enter the ETS, as provided for under the proposed United States scheme as an incentive to start reducing emissions immediately, 32 per cent of senior decision markers (31 per cent of all respondents) support the idea, while 39 per cent (35 per cent) opposed it.

Forty-four per cent of respondents say that New Zealand is doing enough to manage climate change, 39 per cent say that we are not, and 17 per cent don?t know. This compares with 41 per cent no, 34 per cent yes and 25 per cent don?t know when this question was last asked in February 2009.

Fifteen per cent of respondents say the Government is doing a good job of managing climate change, 27 per cent say it?s doing a poor job, and 42 per cent feel netural about its performance.

The Business Council For Sustainable Development says that the results of the survey have been given to politicans.

Click here for the detailed survey report, including by party vote, and an executive summary.