44057 (2024). Chlöe Swarbrick to the Minister of Climate Change

44057 (2024). Chlöe Swarbrick to the Minister of Climate Change: What actions is he taking, if any, to alleviate the impact of emissions pricing costs on lower-income households which, according to the document "Household Cost-of-Living Impacts From The Emissions Trading Scheme and Using Transfers to Mitigate Regressive Outcomes" released by the Treasury, will spend a higher percentage of their disposable income on emissions pricing costs compared with higher-income households?

Hon Simon Watts: The Government is committed to managing the impacts of its emissions reduction policies. Based on our interim modelling, we expect that the policies proposed for ERP2 will have a similar, and potentially slightly better, overall impact on household consumption than previous climate policies. We currently have a range of existing support for lower income New Zealanders, many of which adjust as prices increase. These are expected to help compensate for cost increases resulting from emissions pricing policies. Additionally, the climate dividend will help all New Zealanders, including those on lower incomes, respond to climate change. It will give money from emitters back to New Zealanders so they can choose the best way to respond to increased costs. We are continuing to improve our understanding of impacts on lower-income households through further modelling, and analysis, and through feedback in the consultation period. This additional information will inform final decisions on options to mitigate distributional impacts, and the updated analysis and decisions will be included in the second emissions reduction plan.