Hon David Parker - 8/05/2007
- The government will make important decisions
on New Zealand's move towards a greenhouse
gas emissions trading regime in the next
three months, Climate Change Minister David
Parker said today.
"Climate change policy is about reducing
emissions. An emissions trading scheme could
provide New Zealand businesses with a flexible
way of reducing their carbon footprint,
and help put New Zealand on the path to
a sustainable future," David Parker
said.
A "cap-and-trade" emissions trading
scheme is a market-based means of reducing
greenhouse gas emissions. Participants in
the system are allocated, or purchase, a
share of the capped emissions permits, which
they can trade with others. Those who can
reduce emissions for less than the market
price of emissions, cut their emissions.
"New Zealand's emissions mainly come
from the gas and coal we use in electricity
generation, the petrol and diesel we burn
in our vehicles, methane and nitrous oxide
from ruminant animals and fertiliser, methane
from waste, and the carbon dioxide released
from forests that are cut down and not replanted."
"We have already said we are looking
for a design that will be economy-wide,
and include all sectors, and all gases,"
David Parker said.
"Many details have to be considered,
before a final decision can be taken. These
include when different sectors come in,
the transitional path for emissions, and
the stringency of the targets once they
are in. The government will consider these
issues in detail in the coming months.
"It is important that New Zealand
has durable climate change policy, which
minimises the long-term costs of reducing
emissions while maximising opportunities.
"We have already been engaging with
willing political parties on climate change
policy over the past months, and we look
forward to working with them further on
design details, as we move forward."
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Speech to sustainability seminar
Speech notes for address to Buddle Findlay
Sustainability Seminar. Wellington.
Rt. Hon Helen Clark - 8/05/2007 - Thank
you for the invitation to launch Buddle
Findlay's seminar series on the theme of
sustainability.
I believe that the sustainability challenge
is a defining issue for the twenty-first
century.
How nations grapple with that challenge
will have not only a significant impact
on the world’s environment, but will also
determine whether they themselves can prosper
and sustain their way of life.
There will be no prosperity without sustainability,
but a commitment to sustainability will
help us lock in prosperity.
International discussion of the concept
of sustainable development began at the
UN Conference on the Human Environment in
1972. The Conference declared that:
"The protection and improvement of
the human environment is a major issue which
affects the well-being of peoples and economic
development throughout the world."
Fifteen years later the concept matured
to its modern form in the 1987 Brundtland
report of the World Commission on Environment
and Development. It was there that Gro Harlem
Brundtland, former Prime Minister of Norway,
coined the best-known definition of the
concept:
"Sustainable development is development
that meets the needs of the present without
compromising the ability of future generations
to meet their own needs."
Although the concepts and issues were well
known by the 11000s, sustainability was
not a mainstream concern for most people.
That perception has changed dramatically
in the last few years because of the recognition
of the threat that climate change poses
to our world.
And, like sustainability, the issue of
climate change is not new. It was in 1985
that the World Meteorological Society first
predicted that the build up of greenhouse
gases in the atmosphere would cause global
warming.
What is new is the realisation of the huge
costs and risks of allowing uncontrolled
damage to our climate to continue unchecked.
Those risks and costs are already with
us according to the Stern Report on the
Economics of Climate Change commissioned
by the British Government:
it estimates the economic cost of Hurricane
Katrina to have been around $125 Billion,
the equivalent of around 1.2% of United
States’ GDP.
it estimates that 35,000 people died in
Europe's worst heatwave on record in August
2003 : 14,000 in France, 7,000 in Germany
and over 2000 in the UK – and that agricultural
losses from the heatwave reached $15 billion.
While climate change is undoubtedly a very
pressing environmental challenge, developing
a truly sustainable nation also requires
a broader focus on our economy and society
and in the way we think about ourselves
as a nation.
Sustainability is a term most commonly
applied to the need for sound environmental
policies. But it is a concept I believe
we need to apply across economic, social,
and cultural policies too. Those are the
four pillars of a sustainable nation.
I believe the four pillars are mutually
reinforcing: we cannot build a strong economy
on a society where too many are left to
fail and where we plunder the natural environment
for short term gain.
Conversely we cannot build a strong society
on an economy which fails to generate the
wealth required to fund opportunity and
security for our people, protect our environment,
and develop our culture.
The investments we make in social success
– education and skills, health and housing,
support for families young and old – will
continually reinforce our nation’s ability
to build a strong economy, and deliver the
non-material benefits of a sustainable environment
and high sense of self esteem and pride.
Once you take a broader view of sustainability
of the kind I have outlined, it becomes
clear that we have a once in a generation
opportunity to improve our way of life,
our standard of living, and the state of
our environment by putting sustainability
at the heart of our thinking and decision
making.
There are plenty of interest groups, and
some politicians, who will tell you that
the answer to sustainability issues can
be found in a single market-led policy tool,
or the introduction of certain regulations,
or the banning of some kind of product or
service.
But there is no single solution which can
deliver the broad outcomes I have described,
and those approaches which are too narrowly
focused will miss the wider opportunities
for economic, social, and cultural development.
Solutions will include a range of measures
to both reduce unsustainable activities,
and encourage new behaviours and new businesses
which are more sustainable. These solutions
will include:
Market based tools – such as those we are
considering around an emission-trading regime,
or the setting of procurement guidelines
for government purchasing of sustainable
goods and services.
Incentives to change behaviours – such as
those being offered for the installation
of solar water heating, or the investigation
by the Ministry of Transport of differential
registration fees to encourage people to
buy cleaner vehicles, or the improvement
of public transport in our cities to make
it more attractive than the private car.
Regulation – such as the minimum exhaust
emission standards we are developing for
imported used vehicles, or the changes to
the Building Code.
Information – such as the fuelsaver.govt.nz
website that provides a guide to purchasers
about the fuel economy of their new and
used vehicles.
In coming to decisions about what tools
to use, the government is applying common-sense
principles. For example:
everyone should play a part in the sustainability
challenge, bearing in mind that it will
be easier for some sectors to reduce their
emissions or change their behaviours than
for others,
those who cause emissions, or contribute
to unsustainable activities, should face
at least some of the true costs of their
actions.
measures must be fair. The road to a more
sustainable economy and society should not
exclude groups in society, and it should
not penalise groups who are unable to respond.
Over a number of years we have been working
to introduce sustainability principles into
legislation and policy:
In January 2003 we launched a Sustainable
Development Programme of Action setting
out the broad principles for policy and
decision-making, and applying them in practical
projects across water, energy use, urban
development, and child and youth development.
We rewrote the land transport legislation
to put an emphasis on sustainability. Over
seven budgets we've increased spending on
public transport by around 1000 per cent.
We made sustainable outcomes a key purpose
of the new Local Government Act in 2002.
Our first generation of climate change mitigation
policies included provision for greenhouse
gas agreements with industry; support for
projects to reduce emissions, which helped
stimulate renewable energy investment; investments
in research on pastoral greenhouse gas reductions;
and development of policy for the Permanent
Forest Sinks initiative. It also included
plans for a carbon tax, which was not politically
feasible after the 2005 election.
Over the last two years it has become apparent
that New Zealand’s net Kyoto position is
in deficit, and not in credit as had long
been forecast. That has led us to prepare
a second generation of policies which will
be comprehensive in their reach across energy,
transport, and land management, and include
consideration of emissions trading.
The key objective is to drive down our
greenhouse gas emissions.
Climate change minister David Parker has
announced that government officials are
working on how an economy-wide emissions
trading scheme to support that objective
could be designed.
The feedback we received through our recent
consultation on this issue – and we received
over 3000 submissions – was that a form
of emissions trading was the mechanism favoured
by many to achieve emissions reductions.
Emissions trading is seen as a potentially
flexible system, which allows businesses
to find least-cost solutions to meeting
their emissions reduction targets.
The draft New Zealand Energy Strategy is
also critical to driving down emissions.
Its long-term goal is to have the country’s
electricity produced from renewable sources
to the greatest extent possible, with the
aim of moving fossil fuel generation out
of the baseload and into reserve supply.
I know that energy companies and large
energy users are actively investigating
measures to increase the generation of renewable
energy, and reduce emissions. There is renewed
interest and investment in geothermal energy,
and continued development of wind farms.
The forthcoming decisions on an emissions
trading system will support these developments
by providing better certainty of outcome
for business.
It is very encouraging to see the leadership
on emissions trading being taken by the
NZX Carbon Market Working Group. Last week
they launched the TZ1 (Time Zone One) concept
which aims to make New Zealand a leader
in carbon trading, and indeed the centre
for it in the Asia-Pacific market.
This is great thinking and ambitious, strategic
business leadership.
Government’s attention is also focused
directly on emissions reduction in the transport
and land based industry sectors.
Transport greenhouse gas emissions are
projected to rise dramatically unless we
New Zealanders change our ways. So we are
putting in place a range of related measures:
The government has increased funding for
public transport by around 1000 per cent
since it came into office, and more is planned.
We have brought the nation's rail track
back into public ownership, and begun the
largest programme of upgrading and rebuilding
in decades.
We've introduced a sales obligation which
will see biofuels beginning to power our
cars from next year.
And decisions have been made to ensure that
cars imported into New Zealand in future
meet higher emissions standards, and that
consumers have proper information on the
fuel efficiency of the cars they are purchasing.
Agriculture has particular challenges in
becoming more sustainable, but it is also
a sector with some of the greatest potential
for benefit.
Our land and water needs to be managed
carefully, using the best science to ensure
that we can sustainably produce high quality
food and agricultural products for the international
market.
New Zealand research is already showing
how farmers might be able to make sustainability
part of mainstream farming practices:
Work on nitrogen inhibitors shows promise
for reducing nitrogen leaching from farming
systems, and improving the quality of water
in our streams and aquifers at the same
time.
Research on pastoral greenhouse gases could
lead to lower methane emissions from agriculture
and improved productivity.
We are already world leaders in food production
and food safety. Now we can aim to extend
that leadership into sustainable production
and marketing. Crucially, we need to demonstrate
our sustainable credentials from the farm,
orchard, and vineyard gates, and also from
our forests and marine resources, to the
ultimate consumers and users of our products.
The benefits of this kind of approach will
extend from the producers to the businesses
which develop sustainable processing, packaging,
marketing and transport solutions for our
products.
We can profit from sustainable production,
and the knowledge and skills we develop
around that will be in demand worldwide.
In so doing, we will protect and enhance
New Zealand's reputation, and we will improve
the quality of our environment.
Only last week, Rob White, the CEO of the
New Zealand Wine Company said on Morning
Report that its move to carbon zero status
is lifting demand for its wine, raising
its profile, and helping offset some of
the impact of a strong dollar on its bottom
line.
At a sector wide level, the New Zealand
wine industry is demonstrating tremendous
leadership with a draft sustainability policy
released at the beginning of March. It aims
to have all New Zealand grapes and wine
produced under independently-audited sustainability
schemes by vintage 2012.
Underpinning the response to sustainability
in agriculture is our investment in research
science and technology. Overall government
investment in areas like biotechnology is
around $195 million per year, and there
will be further announcements in the budget
around our investment in science and research
programmes related to sustainability.
It should also be noted that the Crown
Research Institute, Landcare, has led the
way in New Zealand in developing carboNZero,
a credible programme through which companies
and other organisations can seek recognition
for being carbon neutral.
Sustainability is also a key focus in the
current review of the New Zealand Tourism
Strategy.
The draft strategy makes sustainable business
practices central to the future vision for
the industry, and proposes a range of actions
they will need to take, like:
reducing and mitigating carbon emissions
from travel within New Zealand and to and
from overseas markets, and reducing energy
use overall.
extending Qualmark to incorporate environmental
quality standards.
working to protect conservation values at
key natural sites, and
setting targets for measuring these outcomes.
New Zealand has an enviable reputation
as a country with a clean environment, smart
and innovative people, and an inclusive
community. To maintain and build on this
priceless reputation, we need to be bold
in our thinking.
That’s why I have said we should aim to
be the first nation to be truly sustainable,
and aim to be carbon neutral.
What I am seeing across New Zealand, and
what is reflected in the examples I've just
mentioned, is a huge interest from individuals,
communities, and businesses in achieving
greater sustainability.
I believe that in the years to come, the
pride we take in our quest for sustainability
and carbon neutrality will define our nation,
just as our quest for a nuclear free world
has defined us over the past twenty-three
years.
Taking a principled stand also has practical
benefits at an international level. We can
help build consensus and momentum for international
action, and we can mitigate against attempts
to use concepts like food miles as a protectionist
tool against our primary and tourism industries.
In business, people are increasingly aware
of the significance of sustainability as
a defining New Zealand brand, and the importance
of building sustainability into business
itself to identify with and leverage off
that brand.
More and more consumers are interested
in not just what a product or service does,
but also in how it is produced.
Research undertaken in January this year
by Moxie Design Group, TNS Research Ltd
and Nick Jones and Associates found that
27 per cent of New Zealanders, or 1.17 million
people, say that they have purposely avoided
buying from companies because of their impact
on society or the environment. 279,000 people
say they actually made that choice the week
of the survey.
More importantly, the survey suggests that
1.4 million New Zealanders say they will
pay a premium for products and services
which have a positive social or environmental
benefit.
What these results suggest is an increasing
public expectation that business will act
responsibly to address these issues. The
same is true of our customers offshore.
These are trends that cannot be ignored.
We have already seen the risk to our international
trade and reputation from the recent debate
over food miles. However wrong and misleading
the criticism of New Zealand on that issue,
we cannot ignore the signal it sends us
about the importance of being sustainable.
Many in business have already got the message
loud and clear and are actively implementing
sustainability policies. The government
is keen to work with business networks to
promote awareness of what can be done by
business both to raise the value of what
it does and to contribute to a more sustainable
New Zealand.
It is important that government shows leadership
on sustainability, and gets its own house
in order when it is encouraging individuals
and business to take actions for sustainability.
That’s why we have committed to moving
the public service toward carbon neutrality.
This year, six government departments will
commit to achieving carbon neutrality by
2012, and next year all other departments
will begin to follow in their footsteps.
We are also developing sustainable procurement
policies, which will use the government’s
substantial purchasing power to support
environmentally friendly production and
improved cost effectiveness over the whole
life cycle of goods and services.
For example, we will be replacing the VIP
car fleet with more fuel-efficient vehicles.
This simple measure will lead to 550 fewer
tonnes of CO2 being emitted, 400,000 fewer
litres of fuel being used, and $500,000
being saved over three years.
We can also lead the way in our commitment
to sustainable buildings. For example, the
Department of Conservation’s new home is
in a retrofitted building which:
uses rainwater storage, and has reduced
water use from the town supply by sixty
per cent.
has achieved a forty per cent reduction
in energy usage, through the use of natural
light, energy sensors, and efficient lighting.
has automatically opening windows, and a
highly efficient ventilation system.
has full recycling facilities on all floors,
and recycled waste materials during the
construction process.
This building is the first refurbished
building in New Zealand to achieve a 5 star
ecological rating.
Improving energy efficiency and sustainability
have been key considerations in the review
of the Building Code we have been undertaking.
Changes announced last week will bring about
energy use reductions of thirty per cent
in new homes, lower the cost of solar heating,
and implement new standards for energy efficient
lighting in commercial buildings.
We are now consulting on further energy
efficiency measures for water heating and
heating and ventilating systems.
Going forward, one of the big challenges
in energy efficiency and conservation is
retrofitting the hundreds of thousands of
homes built before insulation was made mandatory
in 1977.
Government has a programme in partnership
with other stakeholders like community trusts
to retrofit more than 12,000 homes a year
for older people, and for others on low
incomes with health and disability issues.
There has also been a programme running
to subsidise retrofits for privately let
homes with low income tenants, and another
for Housing Corporation properties.
All such moves for greater energy efficiency
help lower demand for electricity, and make
our vision for a future built around renewables
more feasible.
The Labour-led government's vision for
a sustainable New Zealand is based on the
belief that it is not only the right thing
to do, but also that it will be positively
beneficial to our economy and society and
to our nation’s standing in the world.
We are making sustainability a core part
of our approach to policy.
While the challenges are undoubtedly great,
the opportunities and benefits of New Zealand
becoming a sustainable nation are greater
still.
The good news is that there are households,
businesses and communities throughout our
country which are already taking up this
challenge with enthusiasm, and doing everything
in their power to reduce their emissions,
recycle their waste, and conserve water.
New Zealand as a nation will be enriched
in every way by tackling and winning the
sustainability challenge.
Thank you.
