|Policy Type:||Voluntary Approaches, Economic Instruments>Market-based instruments|
|Agency:||Ministry for the Environment|
|Legal References:||Office of the Convenor, Ministerial Group on Climate Change -|
The New Zealand Government launched the Projects to Reduce Emissions (PRE) programme in 2003 to support initiatives that will reduce greenhouse gas emissions. Eligible projects need to provide emission reductions in the Kyoto Protocols first commitment period beyond the reductions that would have occurred without the project, and not be viable without the incentive. They must also take place in New Zealand and reduce greenhouse gas emissions that are counted in New Zealands greenhouse gas inventory. There are a number of different kinds of projects under the PRE scheme. Some produce renewable energy by using natural resources such as water, wind, or steam from geothermal activity. Others turn waste into energy. Investors are private or publicly-listed companies, state-owned enterprises, and local authorities. The incentive for tendering for PRE was the provision of emissions units, or "carbon credits", which are internationally tradable and add to the financial value of the project. PRE participants may sell the emission units that they receive on the international market either to governments or to private buyers. The price depends on international rules and the market at the time of selling. There have been two trial projects and two contestable tender rounds, the first tender round in 2003 and the second in 2004. There are now 40 projects in the PRE programme. In 2003, 3.8 million emissions units were awarded to 14 projects, and in 2004, 6 million emissions units were awarded to 26 projects. The decision was made in 2005 not to hold a third round of the Projects to Reduce Emissions programme. This decision was made because it was considered important that the PRE programme did not operate in isolation to new climate change policy being developed.
Last modified: Tue, 05 Mar 2013 15:34:45 CET