Cable Viewer

Currently released so far... 11098 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/10 2001/11
2002/02 2002/03 2002/04 2002/07 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AMED ASEC AORC AF AS AEMR ABUD AMGT AR APECO AFIN AM AJ AU AE ABLD AG AY ASIG APER AMBASSADOR ASEAN AA AL ASUP AX AID AUC ASECKFRDCVISKIRFPHUMSMIGEG ADANA AFFAIRS AND AN ADCO ARM ATRN AECL AADP ACOA APEC AGRICULTURE ACS ADPM ASCH AMEX ACAO ANET AODE ARF ACBAQ APCS AMG AQ AMCHAMS AORG AGAO ADM AFSI AFSN AINF AIT AO ATFN AROC AFGHANISTAN AFU AER ALOW AC AZ AVERY AGMT
BO BD BR BEXP BA BRUSSELS BL BM BH BTIO BIDEN BT BC BU BY BX BG BK BF BBSR BMGT BTIU BE BWC BB BP BILAT
CS CASC CA CDC CVIS CY CO CI CMGT CODEL CFED CH CW CU CONDOLEEZZA CR CSW CPAS CJUS CDG CE CG CBW COUNTER CN CKGR COUNTERTERRORISM CWC CJAN CIA CD CLINTON CT CARSON CONS CB CM CLMT CROS CNARC CIDA CBSA CIC CEUDA CHR CITT CAC CACM CVR CAPC COPUOS CBC CBE CDB CAN COE COUNTRY CLEARANCE CACS CF CL CIS CTM COM CV CICTE
DEA DR DA DOMESTIC DHS DAO DCM DEPT DTRA DPRK DEFENSE DE DJ DISENGAGEMENT DOD DEAX DOE DK DS
ETRD ELAB ECON EG EUN EAIR EAID EU ECIN ENRG EPET EFIN EAGR EINT EIND ENERG ELTN ETTC EINV ECPS EFIS EWWT EK ES EN EPA EC ER EI EZ ET EINVECONSENVCSJA ECONOMICS EXTERNAL ELN ELECTIONS EMIN EINN EFINECONCS ETRDEINVECINPGOVCS ENIV ECUN ENGR ENNP EUR EAP EEPET ETRDEINVTINTCS ENVI EFTA ETRO ESENV ECINECONCS ENVR ECONOMY ECONOMIC EUMEM EAIDS ETRA ETRN EUREM EFIM EIAR EXIM ERD EAIG ETRC EXBS EINVEFIN ECIP EINDETRD EUC EREL ECA ENGY ECONCS EINVETC ECONEFIN ESA ETC ETRDECONWTOCS EUNCH
FI FJ FR FREEDOM FTAA FARC FAO FMLN FBI FOR FTA FOREIGN FINANCE FO FISO FDA FAC FOI FM FINR
GOV GAERC GG GT GM GV GH GOI GA GTIP GR GZ GE GCC GY GANGS GL GLOBAL GERARD GF GAZA GTMO
HK HR HO HA HUMAN HU HILLARY HSTC HUMOR HEBRON HI HURI HYMPSK
IR IS IRS IMO ID IWC IZ ICAO IV IC IT IZPREL IRAQI IO IN IAEA ITPHUM ITPGOV ITALIAN IPR INRB ITALY ICRC INTERPOL IQ ICTY INTELSAT IEFIN IA INR IRC IACI ITRA IL ICJ INTERNAL ISRAELI INMARSAT ITU ILC IBRD IMF ILO IDP ITF IBET IGAD IEA IAHRC ICTR IDA IIP INRA INRO IRAJ IF
JA JP JO JOSEPH JOHNNIE JM JUS JAMES
KISL KIRF KWBG KSCA KDEM KIRC KPAO KMDR KCRM KWMN KFRD KTFN KHLS KN KCIP KNNP KSTC KIPR KOMC KTDB KJUS KOLY KIDE KSTH KS KMPI KZ KG KRVC KICC KTIA KTIP KVPR KV KU KR KPKO KGHG KCOR KE KSUM KPAL KSEP KGIC KFLO KAWC KUNR KNPP KNEI KBIO KPRP KMCA KTEX KGIT KNSD KCFE KLIG KFLU KBCT KOMS KBTS KACT KCRS KGCC KDRG KWMM KAWK KHIV KSPR KRAD KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOCI KPAI KHSA KTLA KO KFSC KVIR KX KFTFN KHDP KPLS KSAF KMFO KRCM KCSY KSAC KPWR KTRD KID KWNM KMRS KICA KRIM KSEO KPOA KCHG KREC KOM KRGY KCMR KSCI KFIN KVRP KPAONZ KCGC KNAR KMOC KWAC KMIG KSEC KIFR KDEMAF KNUC KPIN KPRV KBTR KERG KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KNUP KTER KDDG KPAK KREL KCOM KNNPMNUC KRFD KHUM KDEV KCFC KWWMN KTBT KWMNCS KJUST
LE LY LU LTTE LI LO LH LG LAB LA LOG LT
MARR MCAP MOPS MY MNUC MX MARAD MASS MIL MO MU MEPI MR MDC MPOS MEETINGS MD MTCRE MK MUCN MASC MRCRE ML MA MEPP MAR MAPP MP MT MAS MTS MLS MI MERCOSUR MC MV MEDIA MILI MEPN MG MW MIK MTCR MZ MOPPS MAPS MCC MASSMNUC MQADHAFI MTRE
NZ NI NPT NZUS NL NATO NO NAFTA NDP NIPP NP NS NU NATIONAL NPG NGO NG NK NA NSSP NRR NSG NSC NPA NORAD NT NW NEW NH NSF NV NR NE NSFO NC NAR NASA
OTRA OIIP OPRC OVIP OPDC OPIC OREP OEXC OAS OSCE ODIP OSAC OFDP OIE OECD OPCW OVP OPAD OFDA OIC OSCI OMIG OBSP ON OCS OCII OHUM OTR OFFICIALS
PGOV PREL PTER PINR PHUM PK PE PO PREF PHSA PINS PARM PROP POL PSOE PAK PBTS PAO PM PF PNAT POLITICS PARMS PBIO PSI POLINT POLITICAL PARTIES PL PA PGOVLO PORG PGOVE PLN PINF PRELP PAS PPA PRGOV PUNE PG PALESTINIAN POLICY PROG PDEM PREFA PDOV PCI PRAM PTBS PSA POSTS PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PGIV PHUMPGOV PCUL PSEPC PREO PAHO PMIL PNG PP PS PEPR PINT PU PECON POGOV PINL PKFK PY PFOR PHALANAGE PARTY PMAR PHUMPREL PHUS PRL PGOC PNR PGGV PROV PTERE PGOF PHUMBA PEL POV
QA
RS RICE RUPREL RU RIGHTS RO RW RSP RP REACTION REPORT RCMP RSO RF RFE RM ROBERT REGION
SOCI SARS SMIG SCUL SENV SNAR SW SA SP SY SENVKGHG SU SF SAN SZ SR SO SHUM SYR SAARC SL SI SNARCS SWE SN SPCE SNARIZ SCRS SC SIPDIS SEN SNARN SPCVIS STEINBERG SG SIPRS SH SOFA SANC SK ST SEVN
TBIO TSPL TPHY TT TRSY TRGY TN TSPA TU TW TC TX TI TS TO TH TIP TP TERRORISM TURKEY TD TZ TFIN TNGD TINT THPY TBID TF TL TV TK TR
UNGA UZ UK UP USTR UN USEU US UNSC UNHCR UNMIK USUN UNESCO UNHRC UY UNO UG UNDC UAE UNAUS UNDESCO UNEP UNCHC UNFICYP UNCHR USNC UNIDROIT UNCSD UNDP UNC UNODC USOAS UNPUOS UNCND USPS UNICEF UV UNCHS UNVIE UE USAID
VE VT VTPREL VZ VM VI VAT VN
WTO WHO WS WTRO WITH WTRQ WBG WI WHA WMD WMO WIPO WHTI WFP WB WWARD WA WEU WZ
XF XM XV XR XA XK XH XL XS XG XW XY XE XT XD XZ XX XTAG XQ XB XU XI XC
YM YI YMCS YE
ZR ZI ZANU ZU ZO ZP ZB ZL ZK ZF ZEALAND ZN ZA ZOELLICK ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 09WELLINGTON92, NZ EMISSIONS TRADING SCHEME UNDER REVIEW

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09WELLINGTON92.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09WELLINGTON92 | 2009-04-09 02:02 | 2011-04-28 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Wellington

`

    VZCZCXRO3135
    RR RUEHAST RUEHDT RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM RUEHTRO
    DE RUEHWL #0092/01 0990211
    ZNR UUUUU ZZH
    R 090211Z APR 09
    FM AMEMBASSY WELLINGTON
    TO RUEHC/SECSTATE WASHDC 5825
    INFO RUEHNZ/AMCONSUL AUCKLAND 1948
    RUEHBY/AMEMBASSY CANBERRA 5488
    RUEHAP/AMEMBASSY APIA 0555
    RUEHDN/AMCONSUL SYDNEY 0827
    RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
    RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE

` `

    UNCLAS SECTION 01 OF 03 WELLINGTON 000092

    SIPDIS
    SENSITIVE

    STATE FOR STATE FOR EAP/ANP
    PACOM FOR J01E/J2/J233/J5/SJFHQ

    E.O. 12958: N/A
    TAGS: SENV PGOV KGHG NZ
    SUBJECT: NZ EMISSIONS TRADING SCHEME UNDER REVIEW

    WELLINGTON 00000092  001.2 OF 003

    Reftel: 08 Wellington 695

    ¶1. (SBU) Summary.  On December 9, 2008, the newly elected
    National-led Government announced its review of the country's
    Emissions Trading Scheme (ETS).  Established by the previous Labour
    government, the ETS attracted criticism from many quarters,
    including the National Party, for its lack of political consensus
    and its potentially adverse impact on economic growth.  Insiders
    predict that any new legislation will not repeal the existing ETS
    but rather amend it to give greater weight to its economic impact.
    A harmonized approach to emissions trading with Australia is seen as
    desirable by National and both governments have begun to jointly
    study this option.  End Summary.

    PM Key Favors Fiscally Prudent ETS
    ----------------------------------

    ¶2. (SBU)  Prime Minister John Key believes that humans have
    contributed to global warming and that New Zealand should have an
    effective system to reduce the country's greenhouse gas emissions
    and enable the trading of emission reduction credits.  However, PM
    Key has stated that he will only support such a system if it does
    not punitively impact the New Zealand economy.  Before the 2008
    election, Key's opposition National Party was critical of the
    previous Labour Government's Climate Change Response Amendment Act
    2008, which established New Zealand's Emissions Trading Scheme (ETS)
    (reftel).  Key argued that Labour's ETS was established without the
    due diligence and political debate required to form the political
    consensus essential to address a significantly long-term issue, such
    as climate change.  Additionally, Key asserted that any ETS should
    have as a fundamental consideration its impact on domestic economic
    growth.

    ETS Still in Place, but Under Comprehensive Review
    --------------------------------------------- -----

    ¶3. (SBU)  Following the November 2008 election, the newly formed
    National-led government chose not to repeal ETS, but rather to
    initiate a parliamentary study of the program.  On December 9, 2008,
    Key announced the creation of a Select Committee of Inquiry (Review
    Committee) to review the ETS and consider alternative mechanisms for
    addressing climate change.  This announcement honored a commitment
    made to the hard-right ACT Party to secure its support in forming a
    government after the election.  While the Review Committee conducts
    its examination, the ETS program will remain in force despite
    pressure from ACT to suspend its operation.  However, the first
    stage of the ETS emissions reduction timetable does not commence
    until 2010, which leaves some time to review and amend the program.

    Scope of ETS Review Committee Inquiry
    -------------------------------------

    ¶4. (U)  The Review Committee has announced that, during the course
    of its inquiry, it will:

     - Hear views from trade and diplomatic experts on the international
    relations aspects of this issue;

     - Consider the prospects for an international agreement on climate
    change post-Kyoto 1, and the form such an agreement might take;

     - Require a high-quality, quantified regulatory impact analysis to
    identify the net benefits or costs to New Zealand of any policy
    action, including international relations and commercial benefits
    and costs;

     - To identify the central/benchmark projections which are being
    used as the motivation for international agreements to combat
    climate change; and consider the uncertainties and risks surrounding
    these projections;

     - Consider the impact on the New Zealand economy and New Zealand
    households of any climate change policies, having regard to the weak
    state of the economy, the need to safeguard New Zealand's
    international competitiveness, the position of trade-exposed
    industries, and the actions of competing countries;

     - Examine the relative merits of a mitigation or adaptation
    approach to climate change for New Zealand;

     - Consider the case for increasing resources devoted to New
    Zealand-specific climate change research;

    WELLINGTON 00000092  002.2 OF 003

     - Examine the relative merits of an emissions trading scheme versus
    a tax on carbon or energy as a New Zealand response to climate
    change;

     - Consider the need for any additional regulatory interventions to
    combat climate change, whether through an ETS or a new form of
    taxation, such as a carbon tax; and

     - Consider the timing of the introduction of any New Zealand
    measures, with particular reference to the outcome of the December
    2009 Copenhagen meeting, the position of the United States, and
    actions by the Australian government.

    Committee Composition and Timeline
    ----------------------------------

    ¶5. (SBU)  The Review Committee is comprised of members from many of
    the political parties sitting in Parliament with a view to obtaining
    a balanced consideration of and consensus on other alternatives.
    National, as Parliament's biggest party, has four seats; Labour
    three seats; the Green Party, Maori Party, ACT and United Future all
    have one seat.

    ¶6. (SBU)  In an unusual move, Key appointed a minister outside of
    Cabinet, United Future leader Peter Dunne, to chair Review
    Committee.  Dunne is Revenue Minister and Associate Health Minister.
     It is an unusual appointment because ministers do not usually sit
    on committees involving legislation.  Key justified the appointment
    on the grounds that Dunne is an experienced member of Parliament and
    generally considered neutral on this issue.  Although the Green
    Party questioned how neutral a government minister could be in the
    position of chair, Dunne's appointment was generally well-received
    inside and outside of parliament.  Dunne is pro-ETS and soon after
    his appointment stated that "New Zealand needs a robust emissions
    trading scheme in place as quickly as possible to reassure
    businesses and shore-up our international credibility".

    ¶7. (U)  The Committee held its first meeting on December 18, 2008
    and has met several times since.  It plans to report back to
    Parliament in April/May 2009.  The Government intends to pass any
    proposed legislation by September 30, 2009, before the scheduled
    implementation of the existing ETS program that begins in 2010.

    Three Possible Outcomes of the ETS Review
    -----------------------------------------

    ¶8. (SBU)  Rob Eaddy, Chief of Staff to Committee Chair Dunne,
    offered post three possible scenarios at the conclusion of the
    Review Committee process.  The most likely outcome, according to
    Eaddy, is a proposal to revise the existing ETS in a manner that
    earns broad political support and which gives more consideration to
    the impact on the domestic economy.  Another scenario posited by
    Eaddy involves the Committee recommending the imposition of a carbon
    tax in lieu of the carbon market feature within an ETS.  However,
    Eaddy believed this to be the least likely scenario.

    ¶9. (SBU)  Eaddy's third scenario is one in which Australia and New
    Zealand create a tandem scheme that recognizes the strengths and
    weaknesses of their respective economies.  Eaddy added that this
    outcome has long been Key's most favored solution and revealed that
    Key canvassed this concept with Australian PM Kevin Rudd when they
    met on March 2 in Sydney.

    GNZ and GOA Announce Talks to Harmonize Plans
    ---------------------------------------------

    ¶10. (SBU)  Meanwhile, as the Review Committee works toward a
    proposed solution, the GNZ and GOA are looking seriously at the
    harmonization option.  On March 20, NZ Climate Change Minister Nick
    Smith and Australia Minister for Climate Change and Water Penny Wong
    announced the establishment of a trans-Tasman working group to
    explore harmonization of their countries' respective emissions
    reduction and carbon trading regimes.  According to Smith and Wong,
    options include everything from common adoption of key design
    elements to a full harmonization.  No timelines were set by Smith
    and Wong.

    ¶11. (SBU)  Leading NZ business journalist Brian Fallow has, however,
    expressed doubt that NZ and Australia can easily reconcile
    differences in their respective approaches towards emissions
    trading.  Fallow asserted that beyond the political rhetoric lays
    the reality of various stumbling blocks that may make harmonization

    WELLINGTON 00000092  003.2 OF 003

    very difficult or perhaps unfeasible under policies.  Fallow cited
    differences between the two countries in how they each plan to meet
    Kyoto targets and how emission units would be traded.

    Political Parties on ETS Review
    -------------------------------

    ¶12. (SBU)  National's support partner, the ACT Party, opposes any
    form of an ETS.  ACT believes carbon trading is prone to fraud and
    that no case has yet been made to prove that the benefits of an ETS
    would exceed the costs.  The Labour Party and the Green Party have
    both offered to work with the Government on an amended ETS.
    Labour's Climate Change spokesman Charles Chauvel acknowledges that
    the governing National Party is firmly in the driver's seat on the
    ETS review.  [Note.  Even Labour and the Greens, who have
    historically advanced strong pro-environment policies, now realize
    that their positions must take into account the realities of the
    present global economic situation and its impact on achievable
    environmental goals.  End Note].  Minister Smith welcomed the Labour
    and the Greens respective offers and reaffirmed the Government's
    desire to build political consensus on how best to tackle climate
    change.  Jim Anderton, the solitary Progressive Party MP, supports
    an ETS, as does the Review Committee Chair Peter Dunne, United
    Future's only MP.  The Maori Party has yet to articulate a position
    on the ETS.

    Insights on NZ's Post-Kyoto Negotiations
    ----------------------------------------

    ¶13. (SBU)  Tim Groser, New Zealand's Minister for International
    Climate Change Negotiations, expressed his disappointment in a March
    23 media interview that the December 2008 Posnan talks yielded
    little progress toward negotiation of a post-Kyoto agreement.
    According to Groser, the best that can be achieved in the Copenhagen
    talks planned for December 2009 will be some kind of framework
    agreement.

    ¶14. (SBU)  Groser also discussed New Zealand's perspective as it
    enters into post-Kyoto negotiations.  NZ's greenhouse gas emissions
    are "massively in excess of our Kyoto obligations", according to
    Groser, "and taking on even more ambitious targets is a tough ask."
    In addition, he commented that NZ is uniquely and badly placed among
    Kyoto signatories because "there is no technical fix for methane
    emitted from livestock."  NZ must, stated Groser, take into account
    the large percentage of NZ greenhouse gas emissions that are
    generated by agriculture (49 percent), and the unavailability of
    technology that would allow NZ to reduce those emissions.

    ¶15. (SBU)  Another issue for New Zealand in future negotiations is
    forestry, said Groser.  He explained that the Kyoto rules assume
    that all carbon from trees is released as soon as the trees are cut
    down, but that is not true.  Consequently, Kyoto imposes a penalty
    when trees are cut down, even though they are replanted in another
    place.  That result penalizes New Zealand, which wants to transfer
    more of its forests to marginal hill country.

    Comment
    -------

    ¶16. (SBU)  Given the current economic situation and the GNZ's desire
    to avoid any measures that could negatively affect NZ's export
    earnings (which are predominately agriculturally based), we
    anticipate the GNZ will study this issue carefully and delay as long
    as politically possible the implementation of ETS measures for the
    ag sector.  The public and much of the political clamor for New
    Zealand to meet its Kyoto obligations have quieted since the global
    financial crisis.  New Zealand environmentalists and the small band
    of dogmatic pro-environment politicians are likely to press the
    Government towards committing to firm targets in the lead up to
    Copenhagen, while NZ and Australia officials examine what is
    realistic for both their economies.  End Comment.

    Keegan

`