Bridges Simon: Climate Change Response (Emissions Trading and Other Matters) Amendment Bill — First Reading 
Text is incorporated into the Bound Volume 
Bridges Simon: Climate Change Response (Emissions Trading and Other Matters) Amendment Bill — First Reading 
[Sitting date: 23 August 2012. Volume:683;Page:4726. Text is incorporated into the Bound Volume.] 
Hon SIMON BRIDGES (Associate Minister for Climate Change Issues) 
: 
 I would like to endorse the points made by the Minister for Climate Change Issues in his speech. National is committed to creating a cleaner greener brighter future for all New Zealanders. National believes that New Zealand as a responsible international citizen must do its fair share and act to reduce its greenhouse gas emissions. 
The emissions trading scheme is driving investment in renewable energy energy efficiency and tree planting. By maintaining incentives to reducing emissions without loading costs on households and businesses our emissions trading scheme is helping to contribute to a stronger and more productive economy. These changes reflect the balanced approach the National-led Government is taking towards reducing greenhouse gas emissions. The purpose of these changes is to maintain the costs that the emissions trading scheme places on the economy at current levels. 
The Climate Change Response (Emissions Trading and Other Matters) Amendment Bill also makes a number of changes designed to improve the operation of the emissions trading scheme. This will provide more flexibility and ensure that the scheme is fit for purpose after 2012. As outlined by the Minister the main provisions of this bill include keeping the one-for-two obligation in place until after this year. This means participants in this scheme will continue to surrender units for half the carbon they emit. Other provisions include maintaining the $25 fixed price option until at least 2015 which caps the price firms will face if carbon prices begin to rise internationally; introducing offsetting for pre-1990 forest land owners; and allocating the full second tranche of compensation where offsetting is not taken. We are leaving agricultural emissions out of the emissions trading scheme until at least 2015 and reviewing the emissions trading scheme in 2015. 
The bill provides much greater certainty for businesses. This is important because of the challenges the global economy continues to face and the range of possible international climate change frameworks. The bill provides certainty to businesses in three key ways. Firstly businesses will not face additional costs due to the continuation of the transition phase measures. Secondly businesses will continue to be able to meet the emissions trading scheme obligations by surrendering international units. This will mean the price of domestic emission units will continue to reflect the prevailing price of international units. Thirdly the amendments ensure that future reviews of the emissions trading scheme happen only as and when necessary. This should also reduce the concerns about emissions trading scheme review fatigue that have been expressed by some. 
I commend the work and leadership of Minister Groser on what is a balanced and responsible approach. This Government is not willing to heap further costs on households and businesses but we are committed to doing our fair share.