Select Committee evidence: Petition of Alex Johnston on phasing out industrial allocation in the NZ ETS

2 December 2024

On 8 November 2024, the Environment Select Committee wrote to the Commission seeking evidence on the petition of Alex Johnston to phase out industrial free allocation under the New Zealand Emissions Trading Scheme (the NZ ETS).

The Commission responded to the Environment Committee on 2 December 2024 with a submission on the relevant issues.  

In our submission, the Commission confirmed that the petitioner has raised a number of valid policy issues with how industrial allocation operates. We highlighted several challenges surrounding industrial allocation drawing on previous Commission advice, and advised that we see merit in investigating other approaches that could be more conducive to meeting the 2050 target and come at lower cost to taxpayers.

The Committee's letter and our response are available below.

Downloads

Environment Committee – Letter to the Commission (Request for written evidence) [PDF – 4.76 MB]

Climate Change Commission – Response letter to Environment Committee on Industrial Allocation [PDF – 747 KB]