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Ed Sheeran

Iwi steamed up on carbon cost

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Iwi leaders have decided to step up the pressure over what they see as a betrayal by Prime Minister John Key over the emissions trading scheme.

They have commissioned an independent analysis on the effect on the carbon market of allowing New Zealand energy generators and major users to buy cheap East European carbon credits to offset their emissions.

Consultant Chris Karamea Insley says the study showed the collapse of the carbon price allowed energy and fuel companies to toke $1.2 billion in extra profit by buying credits for around $1 a tonne but charging customers as if they were paying about $17 a tonne.

He says iwi had embraced the emissions trading system, and had accepted forests as part of their treaty settlements on the basis that the price of carbon units was likely to be $20 a tonne and above.

Chris Insley says the Prime Minister justified the use of cheap carbon credits as saving money for New Zealand households, but the analysis shows his figures were wildly inaccurate.

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