As we said in our previous post the IEA in its 5 year review of energy policies for participant governments undertakes a broad based review and provides conclusions and outcomes with Government participation under Chatham House rules.The suggested outcomes can be taken as a foregone conclusion.
As has been seen in the MSM one of the recommendations was for a review of the Carbon Tax .Whilst certain malthusians will undoubtedly be right behind this outcome,political constraints will prohibit this.
The IEA says
It is disappointing that the government has decided not to proceed with its planned carbon tax for some sectors of the economy, as incorporating a carbon price signal into the market is a cost-effective means of reducing GHG emissions. Following on this decision, the government is considering other options, including in the short term a more narrow carbon tax and in the longer term other measures. The government should also consider policy options beyond a revised carbon tax, including an emissions trading scheme linked to international markets.
The IEA recommends .
1 Outline a budget and plan for international actions to meet New Zealand’s projected Kyoto Protocol shortfall, and implement the plan as quickly as possible.
2 Consider implementing a carbon tax or emissions trading – or a combination
of the two – as quickly as possible.
3 Address CO2 emissions from the transport sector through appropriate fiscal and regulatory measures.
One of my researchers in Europe said that the Carbon tax will be introduced under another name for transport.The government told the IEA that this will alleviate political problems as the shortfall in the mineral fuels tax for road funding can be used as a de facto Road transport carbon tax.
Various prebudget costing scenarios for an increase in the Mineral fuels tax and road user levies from the shortfall of 5% to an increase of 15% as well as inflation indexing are with treasury.
In addition the changes of registration fees for differing vehicle CC and fuel economy ratings is to be introduced.