Last month the Don’t Subsidise Pollution coalition, including Christian World Service, presented a petition signed by 6,070 people, calling for an end to free carbon credits for high polluting companies.

The campaign wants Aotearoa New Zealand to move more rapidly to becoming a low-carbon economy.

Under the current Emissions Trading Scheme, businesses are required to report on greenhouse gas emissions and surrender one emission unit per tonne of CO² produced.  There are a limited number of units available to assist New Zealand meet its international climate obligations.

The government currently allocates free carbon credits to businesses facing overseas competition from places which have no carbon tax in place. 

The campaign wants free carbon credits removed by 2030, much more quickly than the current 1 percent a year set under legislation. The government is expecting to give away more free credits than will be auctioned under the Trading Scheme from 2026.

The technology for significantly reducing greenhouse gas production is already available but requires capital investment. Funding from the current scheme could be reallocated as a loan or in return for equity to assist these industries to decarbonise.

The petition also asked for a Carbon Border Mechanism (as in the European Union) to assist affected workers to find ‘green jobs’ in a low-carbon economy.

The five largest emitters including transnational corporations Rio Tinto and Methanex produce 10 percent of the country’s emissions, equivalent to around two million petrol-fueled cars.  The subsidies total $600 million annually. 

“Together these requests are largely common sense.  Removing free carbon credits and putting the money into supporting industries to modify their production methods is a better use of public money.  Instead of subsidising pollution, the money would be supporting improvements,” said CWS Board member Jonathan Fletcher who represented CWS at the presentation.

Alex Johnston from Common Grace Aotearoa, which leads the campaign, says it will launch a further action encouraging submissions on the Emissions Reduction Plan. 

In accepting the petition, Labour Climate Spokesperson Megan Woods and Green Party Co-Leader Chlöe Swarbrick supported ending the subsidising of climate pollution.  Government MPs were unavailable.