Amendment to ETS passes second reading

Legislation amending the Emissions Trading Scheme is closer to becoming law.

The Bill, which removes agriculture from ETS obligations, has passed its second reading by two votes this afternoon

MPs have voted 61 to 59 in favour at the second reading of a Bill that amends the ETS

Associate Climate Change Minister Simon Bridges says the Government's main objectives with its amendments are to make sure the ETS supports economic growth priorities more effectively

"Overall the Emissions Trading Scheme is designed to ensure New Zealand can meet its international climate change obligations at least cost to the domestic economy."

Opposition parties are deriding planned changes to the country's emissions trading scheme.

Labour MP Moana Mackey says the changes will see the country's Greenhouse gas emissions increase.

"On planet Key, an ETS that will result in mass deforestation, the death of the carbon fibre forestry sector and increasing gross greenhouse gas emissions; apparently on planet key that makes good environmental and economic sense, well it doesn't."