The ETS is a scheme to raise the funds to pay for our Kyoto Liability. Even if you don’t believe in global warming, we have a liability that is based on carbon emissions. As a nation, either people who produce the carbon pay for it – or everyone pays for it through higher taxes.
So here in lies the question – do we want higher prices for carbon goods or lower incomes because of higher taxes? Given that the liability is a function of the amount of carbon we produce, it follows that pricing carbon on the basis of this will lead to the “best” solution – no matter what political party you support. I know that National, Labour, and the Greens all understand this – so if you guys could like, explain it to the ACT party, and then like, explain it to the public, I’ll be very happy
Unfortunately, even if Global Warming is completely and utterly false in every way, we have still signed up to Kyoto.
So we have to either pay our dues under that scheme, or we have to renege on our international oblations.
The ETS means that (in theory at least) those who cause those obligations pay the bill.
I don’t like it, but the problem is not the ETS, it’s the fact we signed up to Kyoto. That was clearly a mistake, but this is real life and we as a country have to pay for that mistake made by our politicians, same as everywhere else (including Greece).
The upside is that Kyoto is only for a few years. Once that period is up, we can toss the thing.