Fossil fuel bill gets green thumb

The introduction of legislation that will place a 10-year ban on new fossil-fuel power stations has been welcomed by environmentalists but a leading business group says the measure is unnecessary.

The Government introduced a bill yesterday to enact its climate change policy - including setting up an emissions trading system and restricting new fossil-fuel produced power.

Under the bill, new fossil-fuel power plants would be banned for 10 years, unless the Electricity Commission deemed them necessary to ensure the security of the power supply, or they were sufficiently mixed with renewable energy, or based on waste products.

The bill also sets down the process for the establishment of the Government's emissions trading scheme - with different sectors phased in over five years and government support continuing until 2025.

Agriculture, which is responsible for about half of New Zealand's greenhouse gas emissions, will be the last industry brought into the scheme.

Green Party co-leader Jeanette Fitzsimons welcomed the restriction.

 "We've got lots of renewables, particularly wind and geothermal, that are actually cheaper than gas, and it's good to get that really clear so industry knows where it has to go."

But she said the emissions trading scheme needed to be implemented faster.

Greenpeace also welcomed the bill.

But Business New Zealand chief executive Phil O'Reilly said the establishment of an emissions trading scheme, which put a price on carbon, should discourage new fossil-fuel production, meaning a ban should be redundant.

It was vital submitters' views were considered when the bill went to a select committee. NZPA