Emissions Trading Scheme Explanation

Emissions trading is a tool for sending price signals to producers, consumers and investors to reduce the greenhouse gas (GHG) emissions that contribute to climate change. Globally, 23 emissions trading systems have been implemented or scheduled as of 2017.

The New Zealand Emissions Trading Scheme (NZ ETS) began operation in 2008 and continues to serve as a principal element of New Zealand’s policy response to climate change. Motu researchers have written a concise and practical guide to how the ETS works today and how it has evolved over time.

Motu has also released seven short videos answering questions asked by students relating to climate change and the ETS. Below is a compilation video.