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Climate change initiatives are subject to major
review. New Zealand ratified the Kyoto Protocol
in December 2002 following the enactment of the
Climate Change Response Bill. Key elements of
the climate change response included a carbon
emission charge, negotiated greenhouse gas agreements
(NGAs) for at-risk industries and a bid-in Projects
mechanism. Through to the end of 2005, several
large industries had negotiated NGAs and a number
of renewable energy projects (including geothermal
projects) had benefited from the Projects carbon
credits. In June 2005, following a revised projection
of New Zealand's greenhouse gas emissions during
Kyoto first commitment period, a full review of
climate change incentives was commissioned (see
external
site). The results of the cross-departmental
review were announced in December 2005: the review
questioned the true benefits of the overall climate
change policy package.
Climate change initiatives were impacted by the
election of a new Government in September 2005.
One of the implications of the new balance of
power was that it was no longer expected to be
possible to pass legislation related to implementation
of a carbon charge, so this portion of the climate
change package has been dropped. It is still possible
that a limited form of carbon charge may be suggested
for the electricity industry, in which case it
may negatively impact on geothermal generation
(see external
site).
The Resource Management (Energy and Climate Change)
Amendment Act was passed in 2004 and resulted
in greater emphasis to climate change and energy
matters, particularly the benefits of renewable
energy, in Resource Management Act planning and
decision making. Geothermal energy was specifically
included in the definition of renewable energy.
See Also Other Investment Climate
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