An Emissions Trading Scheme review panel report released on Thursday is recommending agriculture, energy, transport and industry be phased in to the scheme gradually, despite being earmarked for inclusion in 2015.

The report, Doing New Zealand’s Fair Share, recommends the scheme be slowed down.

Announcing the scheme, Minister for Climate Change Nick Smith, said the report confirms the Government’s confidence in the ETS, and it is advancing what he calls ‘detailed work’ on the 61 recommendations contained therein.

Treading a fine line Minister Smith said the recommendation to slow down the entry of agriculture is well considered, and the Government will certainly not support its introduction to the ETS before 2015.

Further, agriculture emissions will only be included if practical technologies are available to enable farmers to reduce emissions, and more progress is made in reducing those emissions.

No decisions on the review are expected before the election.

Reaction to the ETS review has been mixed.

Fonterra says it is committed to emissions reductions, and will continue to work to see them achieved, but it remains cautious about  the recommendations made in the revue.

Group Director Supplier and External Relations, Kelvin Wickham says Fonterra remains concerned about applying carbon costs on agriculture in New Zealand, and nowhere else in the world, could shift dairy production to far less emission-efficient countries.

Federated  Framers says many of the points it has advocated for are reflected in the review, and wants it passed into legislation.

Dr William Rolleston, Federated Farmers Vice-President and climate change spokesperson, says the review and the Government response should provide farmers with a huge degree of confidence.

The World Wildlife Fund has issued a statement saying it is disappointed the review panel has recommended ‘a further extension of the loopholes in an already weakened and flawed scheme’.

Peter Hardstaff, WWF Climate Change Programme Manager, says the review appears to have ignored many  opportunities for New Zealand businesses to create green jobs, and increase prosperity by joining the global low carbon revolution.

And the ACT Party’s Parliamentary Leader, John Boscowan, has called on the Government to drop the pretence and scrap the ETS altogether, saying New Zealand is in ‘a lonely club of one’.

‘The report does a great job of highlighting the scheme’s flaws, but does little to remedy them’, he said