18/07/2006
- Minister Responsible for Climate Change Issues
David Parker today released the latest projected
carbon balance for the first commitment period
of the Kyoto Protocol of 2008-2012.
The balance, also known as the
net position, is estimated at a deficit of 41.2
million tonnes of carbon dioxide equivalent. This
is a decrease from the 64 million tonnes deficit
reported in the Crown financial statements in
December last year.
"The projection of the
balance is volatile and I expect it will continue
to change over the next few years. One certainty
is that there is climate change coming and we
have to adapt to that."
Mr Parker said the lower deficit
was mainly due to the impacts of higher energy
prices.
"Higher oil prices in particular
have meant people are expected to use less fuel,
resulting in lower carbon emissions. There have
also been reductions in the net balance deficit
because of better projections of the heavy industry
sector and some refinements of the nitrogen fertilizer
application projections."
Mr Parker said he expected that
the climate change work programme announced earlier
this month would result in policies that would
shape New Zealand's long-term response to climate
change and are expected to improve the net carbon
balance under the Kyoto Protocol.
The full amount of the projected
liability for last year's projection of 64 million
tonn es is already reflected in the Crown accounts,
in accordance with accounting standards. The downward
adjustment is expected to be incorporated in the
Crown financial statements as at 30 June 2006,
due to be published in September.
