NZ Greens call for carbon tax

Too little too late. Only the complete collapse of industrial civilisation might have made a difference. But with 30+positive feedbacks it's too late.

But what the heck – why not do something positive?

However, something has to be wrong if right-winger Matthew Hooten agrees with it

Matthew Hooton @MatthewHootonNZ · 16h

Embarrassing for all concerned, but on first glance I think I support @NZGreens #climatechange policy over @NZNationalParty or @nzlabour

Greens propose carbon tax, tax cut package

The Green Party wants to introduce a carbon tax to replace the troubled Emissions Trading Scheme.

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2 June, 2014

Green Party co-leader Russel Norman admits that putting a price on carbon emissions will raise some costs for consumers, but he says that these will be outweighed by a series of new tax cuts funded by the scheme.

The new policy was announced today as one of a suite of measures in a "climate action plan" aimed at getting New Zealand to carbon neutrality by 2050.

It sets the price of CO2-equivalent emissions at $25 per tonne for all sectors except agriculture.

The dairy industry would also be included in the policy – unlike under the Emissions Trading Scheme – but its emissions would be priced lower, at $12.50 per tonne. Forestry will be credited at $12.50 per tonne.

Households would be better off, dairy farms 'adversely affected' - report

An independent analysis carried out by Business and Economic Research Ltd (BERL) forecast that the carbon tax would likely return an initial revenue stream of $1.1 billion.

The Greens plan to pass this revenue back to the public as a "Climate Tax Cut" in the form of a new income tax-free threshold of $2000, and a 1 percent cut in the company tax rate.

The BERL report found that the average household's finances would likely improve by around 0.6 percent if the policy were implemented, however the report only took into consideration the three groups of goods and services most likely to be directly affected by the tax: dairy, electricity, and fuel.

It predicted a household's annual costs in these areas would increase by $101, but this would be offset by an annual increase in after-tax income of $420 thanks to the cuts.

"We can reduce our emissions without hurting household budgets. Households will be on average $319 better off every year under the Green Party policy,” says Dr Norman.

But the report also found that dairy farms would be adversely affected by the policy.

It forecast that the carbon tax would add around 2 percent to the working expenses of the average dairy farm – and after taking into account the company tax rate reduction, it found the policy would reduce the post-tax profits of the average dairy farm by 12.5 percent.

The report said, however, that this was not enough to put dairy farms at a loss.

"At the currently projected pay-out for milk solids, even dairy farms in the lowest decile would remain well above breakeven in the face of an emissions levy."

Federated Farmers chief executive Conor English says he opposes the inclusion of the farming sector in the scheme.

"They shouldn't be trying to tax farmers. It's not going to change the weather, and it is going to put farmers under financial pressure," he says.

Climate Change Minister Tim Groser, meanwhile, says the Greens' policy goes further than he expected.

"It's much more extreme than I had thought. And this relentless attack on New Zealand dairying, I just can't get it because this is 24 percent of our export income," he says.

National doing 'virtually nothing' on emissions – Norman

Dr Norman says climate change is "the most challenging issue of our time", but that under the current Government's policies, New Zealand's net emissions will continue to increase.

"On a per person basis, New Zealand now produces twice the amount of greenhouse gases as China, and eight times that of India. We are the fifth highest per-person emitters in the developed world," he says.

"National's policies mean New Zealand's net emissions are set to go up by 50 percent in the next 10 years, putting us on track to be the worst performing developed country under the UN Framework Convention on Climate Change."

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Green Party launches carbon tax plans

Climate change is expected to become a pivotal election issue, following a carbon tax policy announced today.

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2 June, 2014

The Green Party, if elected to form a government, wants to scrap the emissions trading scheme and impose a carbon tax on all sectors, excluding agriculture.

Forest and Bird advocacy manager Kevin Hackwell says we're currently paying the polluters by giving them huge subsidies to carry on polluting, and this needs to stop.

"This is one of the issues facing the world at the moment.

"It's particularly important for biodiversity here in New Zealand.

"We've already seen the impacts of it, we need to deal with it, so having a debate about that policy is an important thing for this election."

Greens carbon policy

The Greens are billing their new carbon policy as the biggest tax cut kiwis will be offered this election.

Co-leader Russel Norman’s announced a plan to scrap the emissions trading scheme and replace it with a carbon tax on industry.

He says every dollar raised will be redistributed, by making the first $2000 of income tax-free for individuals, and cutting the company tax rate by one percent.

"Why can't we cut income tax rates and cut the company tax rate by introducing a charge on pollution instead of subsidising pollution?"

Forest and Bird welcomes scheme

An alternative to the emissions trading scheme is being welcomed by Forest and Bird.

As an election promise, the Green Party's proposed abandoning the emissions trading scheme in favour of a carbon tax policy.

Forest and Bird advocacy manager Kevin Hackwell says the Green Party is right to be campaigning for an end to subsidies for major greenhouse gas polluters.

"The climate change policy in New Zealand is not working.

"our emissions trading scheme isn't working so we should have a debate about how we deal with climate change."

Lucy Lawless applauds policy

The Greens are harnessing starpower to push their new carbon tax policy - flying actress Lucy Lawless to the Hutt Valley from Auckland for their AGM today.

The Xena: Warrior Princess star is a passionate climate activist, but not a Green Party member.

However, she applauded the policy - which would see dairy farmers made to pay their share, alongside most other big emitters - with the money going to tax cuts for individuals and companies.

Lucy Lawless says she'd like to see National and Labour come up with innovative ideas to tackle carbon emissions.

Proposal faces criticism

Criticism is being fired at the Green Party's move to impose a carbon tax policy, with the farming sector calling it a political stunt.

Green Party co-leader Russel Norman has announced its plan to scrap the emissions trading scheme, and bring in a carbon tax.

All sectors – except agriculture – will be made to pay $25 per tonne of CO2 emissions, while dairy emissions will cost just half that.

Straterra CEO Chris Baker says it makes no sense to get rid of such a sophisticated scheme.

"While we accept the carbon price is low, it's available and able to be increased in terms of its impact on the economy as international conditions dictate and allow."

Federated Farmers vice president William Rolleston says while it does recognise New Zealand farms are the most carbon efficient in the world, it's foolish to penalise the dairy sector.

He says dairy farmers are also the most carbon efficient, so in this case, he wonders whether politics has trumped science.

Mr Rolleston says beef and sheep farmers have been excluded, and so should dairy farmers.

"The logic is that New Zealand farmers are the most efficient protein producers in the world and penalising them would only drive emissions offshore.

"That applies to sheep and beef as well as dairy."

Greens' carbon tax proposal

Big carbon emitters will be made to pay a fairer share, and households will end up with more cash in hand – under a carbon tax, promised by the Green Party.

But farmers are set to get off lightly, in the policy announced by co-leader Russel Norman at the Greens’ AGM this afternoon.

It includes scrapping the emissions trading scheme, and instead charging non-agricultural emitters 25 dollars per tonne of carbon.

Dairy farmers will pay just half that – and sheep, beef and other farmers are excluded, pending advice from a proposed Climate Commission.

The revenue would go back to earners, with their first $2000 of income tax-free, and a one percent tax cut for businesses.

As expected, Greens co-leader Russel Norman's announced the party will scrap the emissions trading scheme and instead, bring in the tax - if it helps form the next Government.

All sectors - except agriculture - will be made to pay $25 per tonne of CO2 emissions, while dairy emissions will cost just half that, at $12.50.

Forestry will get a credit of $12.50 per tonne of CO2.

Other agricultural areas, including sheep and beer farming, won't be included at all - pending advice from a Climate Commission the Greens also plans to establish.

It would advise the government on carbon prices, carbon budgets and "complementary measures" to make New Zealand carbon-neutral by 2050.

All of the revenue from the carbon tax will be returned - with individuals getting a "climate tax cut", with their first $2000 of income tax-free.

The Greens say households will be an average of $319 better off a year.

There'll also be a one percent tax cut for businesses.