The Government's plan to prevent carbon prices from rising is costing taxpayers half a billion dollars.
In late 2022, Cabinet rejected Climate Change Commission advice to change Emissions Trading Scheme settings to enable the carbon price to rise more than it had in the past.
NZ Herald Wellington business editor Jenee Tibshraeny explained that Cabinet's decision to prevent the carbon price from rising saw the price of carbon fall significantly.
Jenee Tibshraeny says the Government gets revenue when companies surrender units for emitting, and the decreased price of carbon lowered the value of the units- creating a $3.2 billion deficit. Â
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