Groser's announcement about the second Kyoto commitment period was made the same day that the Climate Change Response (Emissions Trading and Other Matters) Amendment Bill passed its third reading in the House. The Bill received royal assent on Monday.
It amends the Climate Change Response Act 2002 to extend the current transitional period which protects domestic GHG emitters from full obligations under the NZ ETS. Specifically, the Act extends (with no specified end date):
- the current one-for-two surrender obligations (half-price trading) for ETS participants (other than those in the forestry sector);
- the price cap for carbon of $25 per NZU; and
- the exclusion of biological agricultural emissions from surrender obligations.
These changes, along with the other main amendments proposed in the amendment Bill, have now been enacted.