ETS (Emissions Trading Scheme) about to enter drive mode

The Emissions Trading Scheme (ETS) has had limited effect on changing behaviours because its engine has been sitting in neutral during the transition phase - but the Government is about to shift it into drive mode.

The Ministry for the Environment (MfE) has put out a discussion document on detailed reform options (Discussion Document). Submissions close on 21 September 2018.

Most of the big mode-changing decisions have already been made. The Government has committed to:

• capping the number of units supplied into the ETS
• introducing an auctioning facility
• replacing the $25 fixed price option with a cost containment reserve mechanism, and
• restricting the use of international units by volume and through integrity of origin standards.