This submission in response to the Emissions Reduction Plan supports the Zero Carbon Act’s goal of attaining net zero by 2050. We urge a greater focus on the Emissions Trading Scheme, enabling carbon prices to do more of the work in getting New Zealand to Net Zero, and avoiding policies that put net zero at risk by forcing higher-cost emission reduction strategies.

In summary:

• We suggest that the Committee consider focusing the Emissions Reduction Plan to a narrower brief.
• We suggest that measures undertaken within the Plan be adequately assessed for cost-effectiveness and additionality, taking into account the effects of the Emissions Trading Scheme.
• We suggest that the Committee consider a carbon dividend as solution to equity and just transition concerns, as well as a way of locking in political support for rising carbon prices ove the critical medium term.
• Finally, we suggest that the ETS be allowed to do its work in reducing net emissions. Other policies should be used for addressing other concerns, rather than attempting to refocus and balance between gross and net emissions within the ETS.