Craig LizDr LIZ CRAIG (Labour): Thank you Madam Chair. In my brief contribution I'd like to focus on international credits because we've had a number of Supplementary Order Papers (SOPs) tonight where the intent of the SOP has actually been very much in line with where the bill's going and most of what's covered is actually covered already in the bill. But in this particular SOP No. 406 from David Seymour actually it's taking things in the other direction because what he's proposing is a new section 5W talking about how emission budgets are to be met. What he's suggesting is that emission budgets can be met through domestic emission reductions and domestic removals or offshore mitigation. What he's suggesting is: In considering how emissions budgets may realistically be met the Minister must be neutral [on] whether emissions budgets [can be] met through domestic emission reductions … or offshore mitigation."A lot of the submissions that we got during the select committee process actually really wanted to go further in terms of not using international credits at all. Victoria University of Wellington Students' Association—their view was "We think that the Bill saying targets must be met as far as possible domestically is vague and unhelpful. We ask that the Bill be revised to include:—The prohibition of the use of international credits to promote long-term certainty and accountability." It was their view that this is necessary to drive domestic action and innovation from communities. They were saying if we could just offset all the time by overseas credits that would actually stymie our drive to domestic action and basically also talking about then allowing us to pay other countries to do the work for us—and so that real sense that we should as a country be providing leadership in that.So this is where within the Environment Committee we actually did go further in terms of some of the amendments that were recommended to actually strengthen that understanding that it was actually domestic action that needed to be happening. In clause 8 new section 5T(ab) it states that it requires the Minister to set a series of emissions budgets "in a way that allows those budgets to be met domestically;". So when we're thinking forward about where we're going to be going their whole intent is that that would be domestic action.Then in clause 8 new section 5W(1) it already said that "Emissions budgets must be met as far as possible through domestic emissions reductions and domestic removals." but we added some strengthening there to talk about offshore mitigation being used if there was a significant change in circumstance—so not as a routine but only if we needed it if there was an unintended unanticipated change in circumstance that affects the considerations on which the relevant emissions budgets were based and it affects the ability to meet the relevant budgets domestically. So it really was strengthening that and saying "We need to provide leadership as a country in terms of our emissions reductions." and that was incredibly important. So for me the sense is that this Supplementary Order Paper 406 by David Seymour would take that in the other direction and we're not wanting to support that.One thing I would like the Minister for Climate Change just to comment on if he's got the time is the international shipping and aviation because that's something that we haven't talked about much in this committee stage. We received a lot of submissions on this talking about international shipping and aviation and needing that to be added to the bill so that it accounted for those emissions that were produced by those purposes. Basically again one of the submissions said "The urgency of climate change and the need to bring all sectors into this—we think that the bill should include our share of international aviation and shipping emissions in the bill." So what we did do as a select committee is recommend that a new section 5OA be included in the bill and it says "The Commission must no later than 31 December 2024 provide written advice to the Minister on whether the 2050 target should be amended to include emissions from international shipping and aviation (and if so how [that should happen]".The sense was I think that with what's happening overseas at the moment we weren't quite there yet in terms of us being able to bring that into our own primary legislation and that further work needed to be done. But there was a real sense that we do need to consider that in 2024 at that point because at the moment while some countries are reporting this in their greenhouse gas inventories they're not actually including it in their totals. So it really was a matter of seeing where we get to in terms of what's happening overseas. So with that I'm happy to support some further discussion on that. Thank you Madam Chair."