Fishing
The fishing sector will receive a free allocation of emission units. This is equal to 50 per cent of the impact of the emissions trading scheme on their liquid fossil fuel costs. The allocation will cover only liquid fossil fuels used by fishing vessels and will be given to operators of fishing vessels.
In the fishing industry, all fuel sold to fishing vessels in New Zealand, irrespective of where they go fishing, will include the increased costs of the emissions trading scheme. However, some vessels may fish in the New Zealand exclusive economic zone using fuel that is purchased outside New Zealand and it may not include any emissions trading scheme costs.
To rectify these inequities, the emissions trading scheme sets up a process to consider the potential inclusion of two sources of fuel that are otherwise excluded from the scheme:
- fuel used by international cargo carriers on domestic legs when domestic cargo is carried
- fuel used while fishing in the exclusive economic zone but where the fuel was not purchased in New Zealand.
These two provisions, if progressed, would ensure the same emissions trading costs are faced by all carriers of domestic cargo and all vessels fishing in New Zealand waters. It would mean some international carriers and some fishing vessel owners would become participants in the scheme in addition to fuel suppliers.
Further information on allocation to the fishing industry (NZ Legislation website) and how the emissions trading scheme will affect fuel used by New Zealand’s shipping industry (Ministry of Transport website) will become available as information on the provisions are developed.
Last updated: 21 September 2009
