NZ energy strategy favors emissions trade

WELLINGTON, New Zealand, Dec. 11 (UPI) -- The New Zealand government favors an emissions trading system as a way to promote clean energy and reduce pollution.

Energy Minister David Parker released the draft of a new strategy paper designed to reduce New Zealand's growing greenhouse gas emissions.

The document revealed the government has revised the idea of a narrow carbon tax focused on the energy sector, but favors an emissions trading system over a simple tax.

The strategy paper provided a number of variations of this, mostly involving a cap on the amount of allowable emissions in particular sectors. Companies would then trade for the permitted units.

Parker said ensuring future electricity supplies was a key plank of the strategy, which provides principles and policy options through 2050.

He said he expected the government to take decisions and implement new policy toward the end of 2007.