The carbon price has fallen since the government this week announced it would de-link the Emissions Trading Scheme from its Paris climate pledges. Critics say it is yet more watering down of the country's climate change effort. On Tuesday night it announced it would amend the Climate Change Response Act - removing the requirement for the emissions trading scheme to accord with Paris Agreement commitments.
The price of carbon units dropped immediately by 20 per cent, then came back a bit, to being down 10 per cent. A higher carbon price incentivises behaviour change by emitters, to reduce their emissions. A leading carbon trader says the loosening of the link between the ETS, and international commitments, enables short political or economic considerations to outweigh longer term climate commitments.
The Government says the changes will reduce costs to government and business, and do not lower ambitions for emissions reductions. Dr Christina Hood, an international climate and carbon pricing expert, speaks to Kathryn.
Photo: RNZ / Nick Monro
