Big emitters of greenhouse gases will have to pay the full cost of their gas emissions under a bill passed into law with unanimous support today.

The Climate Change Response (Removal of Transitional Measure) Amendment Bill phases out the one-for-two measure that was introduced during the global financial crisis to help moderate the initial costs of the Emissions Trading Scheme (ETS) while businesses were struggling.

'This is a significant step in helping New Zealand meet its ambitious target of reducing emissions to 30 per cent below 2005 levels by 2030. More importantly, it will support our efforts to grow a lower-emissions economy, Climate Change Minister Paula Bennett says.

'It is time businesses move towards paying the market price of their emissions. Gradually removing the one-for-two measure is a pragmatic and practical way for them to manage the costs.”

The current 50 per cent unit cost will increase to 67 per cent from January 1 2017, then 83 per cent from 1 January 2018, with all sectors in the ETS paying the full market price from 1 January 2019. The current price ceiling which caps units at $25 will remain.

'While this is important, it is not the sole answer to tackling climate change. The Government is committed to working with families, businesses and our international partners to deliver real solutions that will leave the planet a better place for future generations,” Paula says.

Source: Office of Paula Bennett.