Apparently National has decided to allow coal and gas-fired power plants, in a reversal of the previous government’s decision. They have almost simultaneously discarded the obligation on fuel companies to provide biofuel.
In a way, Gerry Brownlee is right that “the ETS put a price on pollution, providing adequate incentives for power companies to invest in renewable generation.” The regulations did distort the incentives of producers to invest in green technology as Matt has previously written about. Removing the distortions and implementing a carbon market is probably the best way to ensure we reduce our emissions at a minimal cost. So why aren’t I happy about the government’s decision? Read more