BUDGET 2016: Industry’s ETS subsidy axed; $25 a tonne carbon cap remains

Thu, 26 May 2016

By Pattrick Smellie May 26 (BusinessDesk) - Electricity producers, transport fuel providers and industries with high carbon emissions will lose access to the subsidy that requires them to offset only half their emissions, Climate Change Minister Paula Bennett announced in the Budget. Major emitters who don’t face export competition are currently subject to a ‘one-for-two’ subsidy scheme over the next three years, with a benefit to the government in avoided costs of $356 million over the next four years, assuming carbon valued at $12 a ton...

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