NZ ETS Settings Hold Steady Amid Shortfall Warning
The Climate Change Commission has recommended maintaining the current New Zealand Emissions Trading System (NZ ETS) settings but warns of a potential unit shortfall as early as 2028.
Murphy warns, "You'll see a $10 cucumber in no time".
Greenhouse growers will be affected by changes to industrial allocation, where government gives free emission units to businesses, keeping them competitive against countries who aren't facing crippling ETS costs.
There will be fewer free permits than before; some growers will pay an extra $200k this year, which VNZ warns could force them out of business.
Those locked into gas contracts who cannot switch to alternatives will be hit with higher ETS fees for using that gas.
As Murph rightly says, "it's a triumph of bureaucracy".
