In an unredacted paper, Climate Change Minister Simon Watts said future decisions on Emissions Trading Scheme settings would have to consider the additional pressure on sectors covered by the scheme as a result of the elimination of agricultural emissions pricing. The ETS covers every sector except for agriculture.
“Future NZ ETS settings decisions will need to reflect the growing relative balance between NZ ETS and non-ETS sectors. All else being equal, as a result of the emissions budgets being all gases, the less abatement achieved in agriculture, the more will be needed from NZ ETS sectors,” Watts wrote.
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