To the Select Committee from the Centre for Resource Management Studies 21 May 2009




Further Submission by the CRMS to the Select Committee: Review of the Emissions Trading Scheme. (As requested by Dr Paul Hutchison.)


1.         Background
Both the US and the New Zealand governments are pondering their commitment to an Emissions Trading Scheme and how best to implement it – or even whether to implement one at all.
Agriculture is a major issue in both countries. New Zealand’s agriculture is our major export earner while US agriculture is a major beneficiary of the internal trade in which farm subsidies are exchanged for votes.
However, while New Zealand farmers are faced with buying carbon credits because our ruminants belch methane into the atmosphere, US farmers are selling carbon credits because their grasslands sequester carbon into the soil.