McClay Todd: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
McClay Todd: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 13 November 2012. Volume:685;Page:6499. Text is incorporated into the Bound Volume.] 
8. 
TODD McCLAY (National—Rotorua) 
 to the  
Minister for Climate Change Issues 
: What steps is he taking to ensure the environmental integrity of the New Zealand Emissions Trading Scheme? 
Hon TIM GROSER (Minister for Climate Change Issues) 
: 
 If we expect our households and our businesses to pay for the costs of an emissions trading scheme it is extremely important that they know it is achieving the effects intended. So today I have announced that I will begin very short consultations on the environmental integrity of certain types of units for which there are legitimate reasons for concern and I am sure that when we finally announce our decisions in a couple of weeks’ time that will help restore confidence in the scheme’s trading units. 
Todd McClay 
: What impact will banning these international units have on the liquidity of the New Zealand emissions trading scheme? 
Hon TIM GROSER 
: Well given that—from memory—some 230 million units have been traded during the first commitment period and about one-third of them are indeed these particular units it may have some impact on liquidity. It may somewhat raise the average price in our register but I think that is a price worth paying to maintain the environmental integrity. 
Todd McClay 
: How does banning these particular units align with policies of other developed countries? 
Hon TIM GROSER 
: It will put us in the same space as the European Union which will—my understanding is—ban these units from 1 January 2013. 
Charles Chauvel 
: What advice have he or his colleagues received about the likely effect of last Thursday’s decision to quit the Kyoto Protocol on support amongst developing countries for New Zealand’s intended bid for a seat on the Security Council? 
Hon TIM GROSER 
: I have received no such advice and I would be very surprised if I did receive such advice. They are completely unrelated matters. 
Charles Chauvel 
: I seek leave to table a letter dated 8 November from the chair of the Least Developed Countries Group at the UN climate change negotiations to President Obama stressing the importance of the second commitment period to the Kyoto Protocol. 
Mr SPEAKER 
: Leave is sought to table that document. [ 
Interruption 
] Order! Is there any objection? There is no objection. 









Document by leave laid on the Table of the House. 
Charles Chauvel 
: Does the Minister agree with his predecessor Nick Smith who said on climate policy on 15 September last year: “Australia is particularly significant given the extent that our economies are integrated. … the two schemes will be closely aligned ...”; if so what logical explanation can there be for last Thursday’s decision to quit the Kyoto Protocol the same day that Australia affirmed its commitment to that protocol? 
Hon TIM GROSER 
: The member is mistaken. We are not quitting the Kyoto Protocol. We are fulfilling our obligations under the Kyoto Protocol. The reason why it is no longer possible is that the Australian Government—the member can surely remember this—has changed its domestic policy completely from having an emissions trading scheme to having a carbon tax. Therefore it is actually impossible for us to align with Australia at least until 2015 when it may move towards an emissions trading scheme.