To Nick Smith from Maureen C 6 June 2010

Dr Smith

The ETS debate continues albeit a very one-sided debate, largely due to a compliant media.
Your often quoted mantra that 'New Zealand does not lead the world with an ETS and 29 countries already have a system in place', is of course not entirely true and you are well aware this is not true.  New Zealand is the only country to have an ''all sectors, all gases" ETS.  You are also well aware that 27 of the 29 countries you quote are within the EU and that scheme has so many exemptions as to make a comparison with New Zealand's scheme laughable.  
Dr Smith you are very quick to point out that both ACT and Federated Farmers are misinforming the public.  Below are three quotes, are you saying that these statements are untrue, if so perhaps you would be good enough to correct them. 
Until that happens we can only assume they are correct and it is you that is misinforming the public of New Zealand and to be honest Dr Smith, we deserve better.
Dr Muriel Newman in an open letter to John Key
The reality is that while New Zealand’s comprehensive “all gases, all sectors” ETS will generate a significant income flow for the government, it will seriously damage our economy. In comparison, the European Union's ETS targets just 43 percent of industrial emissions, excluding the transport sector which generates 21 percent of EU emissions, the household and small business sector which generates 17 percent, agriculture which generates 10 percent, and construction and waste which generate 9 percent. Furthermore, the EU scheme is based solely on carbon dioxide - methane, nitrous oxide and fluorocarbons, which make up 48 percent of the European Union's greenhouse gas profile, are all excluded.
Don Nicholson Federated Farmers
Sectorally, Europe’s ETS excludes emissions from transport (21 percent of EU emissions), households and small business (17 percent), agriculture (10 percent), construction and waste (9 percent). So the EU’s much trumpeted ETS, from where we’re told by New Zealand MP’s and the media, a ‘consumer backlash’ against New Zealand goods would come, omits just 57 percent of its own emissions.
Richard Treadgold 28 April 2010
Climate Conversation Group

The EU scheme is very far from having the all-gases all-sectors coverage of the NZ ETS. Take note:
  1. The EU ETS doesn’t apply to methane, nitrous oxide, fluorocarbons, ozone, etc. Carbon dioxide only — which the IPCC reckon represents just 52% of human-caused emissions. So 48% of EU greenhouse gases (i.e., all non-CO2) are left out. Perhaps it was too hard?
  2. It doesn’t apply to emissions from the transport sector (21% of emissions), households and small business (17%), agriculture (10%), construction, waste, etc. (9%). So 57% of EU emissions are omitted.
  3. It applies only to heavy industry and electricity generation — omitting all other economic sectors (e.g. Government, services, wholesale and retail trade, finance, etc.) which make up 96% of economic activity. So only 4% of economic output is covered.
  4. It operates at an international level — so over 80% of exports and imports by value are with countries under the same regime, facing the same costs and the same restrictions.
New Zealand is the world’s only country — the only national entity — that has legislated an ETS. Everyone we deal with won’t be facing the same costs and the same restrictions as our businesses.
Maureen C

To read Nick Smith's reply click here