11. Question No. 11—Climate ChangeCHLÖE SWARBRICK (Green) to the Minister for Climate ChangeQuestion No. 11—Climate Change11. CHLÖE SWARBRICK (Green) to the Minister for Climate Change: What is the Government doing on climate action?Hon JAMES SHAW (Minister for Climate Change): Today I have introduced the Climate Change Response (Emissions Trading Reform) Amendment Bill into the House which will finally make the emissions trading scheme do what it is supposed to do and drive the transition to a low-emissions economy. Also today the leaders of New Zealand's farmers' organisations have committed the sector as a whole to a concerted effort to cut climate pollution over the years to come. We will be working with farmers in the coming years to move them towards a farm-level pricing scheme that reduces emissions keeping us below 1.5 degrees of global warming. For too long politicians have passed the buck and caused uncertainty for everyone while the need for climate action was clear. We are proud to take on this long-term challenge together with farmers ready to go and New Zealanders right behind them to keep our planet safe for future generations.Chlöe Swarbrick: So what is the Minister's message [Interruption] to the more than 150—SPEAKER: Order! Maureen Pugh please be quiet.Chlöe Swarbrick: So what is the Minister's message to the more than 150000 New Zealanders who recently took to the streets asking this Government to do more to protect the climate?Hon JAMES SHAW: Well my message is that this Government has stopped issuing offshore oil and gas exploration permits supporting New Zealanders to use less fossil fuels and more renewables. We are investing billions of dollars in clean transport infrastructure and now we are committing all sections of our economy to fair emissions pricing to drive down emissions. Today's announcement is a world first—pricing agricultural emissions. Robust emissions pricing is the start of an enduring framework for meeting the challenge of climate change but we know that other tools are important as well and that more needs to be done.Chlöe Swarbrick: So how will the Climate Change Response (Emissions Trading Reform) Amendment Bill introduced today align with the Climate Change Response (Zero Carbon) Amendment Bill just reported back from select committee?Hon JAMES SHAW: I know that most of the headlines today are on agricultural emissions pricing but members of this House may be interested to know that the bill introduced today will also achieve other significant changes in the emissions trading scheme so that it actually does what it is supposed to do and bring down emissions. For example it will enable the Government to align the total allowable number of units in the emissions trading scheme with the five-year emissions budgets under the zero carbon bill. This is an important fix to the emissions trading scheme because until now we've had a cap-and-trade system with no cap. We're introducing a cap which will reduce over time driving down our country's impact on the climate from energy and transport emissions in particular.Chlöe Swarbrick: Will free allocation of emissions trading units to major polluters be phased down?Hon JAMES SHAW: Yes it will starting a process that was due to begin I think originally in 2011. It is important that we tackle emissions—particularly in the industrial heat and transport sectors where carbon emissions are growing at the fastest rate. The phase down of free allocation will happen in a measured and predictable way that allows businesses to plan and make investment decisions that will reduce their emissions. All sectors of our economy will pay a fair price for their emissions and of course they can reduce this by reducing their emissions.Chlöe Swarbrick: Will and if so how does the bill make up for dodgy emissions trading practices in the past?Hon JAMES SHAW: The bill creates the power for the Government to cancel fraudulent Kyoto units—those so-called hot air credits purchased under previous Governments from dubious Eastern European sources that didn't actually relate to any real emissions reductions. We're serious about environmental integrity and we're taking steps to actually reduce emissions not just pretend to.Rt Hon Winston Peters: Could I ask the Minister as to whether or not it's a fact that today's announcement is a triumph of common sense and trust in responsible primary sector leadership?Hon JAMES SHAW: It is indeed a fact.