ETS postponement costs 'understated'

Last updated 08:00 12/07/2012

Relevant offers

National News

John Banks: 'I'm an innocent man today' Muslim communities facing a 'backlash' over law Donghua Liu evidence suppressed Health Department shuts down Auckland school Auckland ex-cop jailed over drug offences Two dead in tanker crash Witness to historic sex assault identified Dotcom's mansion life to continue Crane topples onto Auckland house MH17 crash victim honoured

The real cost of changes to soften the impact of the emissions trading scheme have been severely understated, and could reach $1.3 billion, according to climate change lobby group the Sustainability Council.

Cabinet papers made public yesterday show the Government estimated the cost of the changes would be $328 million over the next three years, although when the changes were announced earlier this month Climate Change Minister Tim Groser and Prime Minister John Key highlighted the $80m a year cost.

However, Sustainability Council chief executive Simon Terry said the true cost was closer to $1.3b. "The Government has used a carbon price of $6 a tonne when estimating the costs of the changes," he said.

However, the Government had previously used $25 a tonne, which would push the cost up to $1.3b.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content