Don’t Subsidise Pollution
Subsidising pollution in a climate crisis doesn't make sense. It’s time to end free carbon credits to cut emissions and unlock green jobs for Aotearoa's industrial future. This campaign focuses on holding big polluters accountable for their emissions as well as holding the government accountable to the ETS.
The campaign calls for:
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Increase the industrial allocation phase out rate to 14% per year (from current rate of 1% per year) starting in 2025, to reach zero free allocation by the end of 2030
Reduce the emissions cap by half of the equivalent reduction in freely allocated units
Auction the other half of emissions units no longer freely allocated to generate revenue for reinvesting in climate action
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Use revenue from extra auctioned NZU’s to co-fund up-front decarbonisation options for Emissions Intensive and Trade Exposed businesses where available to help keep jobs in place and clean up industries
Link investments to credible emissions reduction outcomes, and in response to verifiable, ambitious industry decarbonisation plans.
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Introduce a Carbon Border Adjustment Mechanism on imports for industries vulnerable to emissions leakage at the same time as an accelerated phase out of industrial allocation (phased in from 2025 to be fully in place by 2030).
Maintain demand for locally produced steel, concrete and wood processing through sustainable infrastructure coordinated by a Ministry of Green Works as proposed by First Union, or through public procurement policy.
Government to fund just transition plans and involve workers where decarbonisation options aren’t available, in line with a just transition.
