Two for one emissions to end

The Herald reports:

Big industrial emitters of greenhouse gases will lose their right under the emissions trading scheme to offset only half of their emissions, Climate Change Minister Paula Bennett told an international energy conference in Wellington.

It was a matter of “when not if” the so-called “two-for-one” concession would be removed, she said, leaving open the impression that the current $25 a tonne upper limit “cap” on carbon prices may also be removed or placed at a higher level.

“It was always a temporary measure,” said Bennett of the concession. “It is abundantly clear that if the ETS is going to work, carbon must cost more than it does right now.”

As Bennett says, the two for one was always temporary. What will be key is how long the transition is.