OECD reports calls for credible carbon pricing

A new OECD report has highlighted the need for credible and consistent carbon pricing to tackle climate change, says Labour Climate Change spokesperson Moana Mackey.

“The report says governments must ‘ensure that price signals sent to consumers, producers and investors alike are consistent and facilitate the gradual phase-out of fossil fuel emissions’.

“This reinforces what Labour has been consistently saying.

“The National Government has gutted the emissions trading scheme and refused to place any restriction on the cheap international units (ERUs) flooding into New Zealand. They have sat on their hands as the price of carbon collapsed with devastating implications for our carbon forestry sector.

“I have a Members’ Bill in the ballot to restrict these cheap units and stabilise the price of carbon in New Zealand by requiring 50 per cent of all emissions surrendered to be New Zealand Units. This would be a good first step towards ensuring an effective price on carbon.

“The report also says governments need to ensure their policies don’t hinder action on climate change.

“The National Government’s singular focus on oil and gas exploration has meant they have refused to support policies which would add to our climate change response, such as a moratorium on any new fossil-fuelled baseload electricity generation.

“This is yet another report calling for urgent action if we have any hope of limiting climate change to a 2ºC temperature increase from pre-industrial levels, as agreed by the global community.

“It is time the National Government started listening,” Moana Mackey says.

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