David Parker18 August,
2008 - Address at the opening of the 4th
Australia and New Zealand Climate Change
and Business Conference
5.45pm, 18 August 2008
Sky City Auckland Convention Centre, Auckland
I would first like to
welcome you all here to Auckland for the
4th Australia and New Zealand Climate Change
and Business Conference. I wish to offer
a particularly warm welcome to our counterparts
who have made the trip over from Australia
and further afield. We are pleased to have
you here in New Zealand.
New Zealand is proud
to be hosting this event. It is occurring
at a particularly important time in the
climate change arena in Australasia. The
debate around climate change has well and
truly moved on from whether it is happening
to what we should do about it. We are focusing
on initiatives that will have an impact
on reducing emissions.
We know this is a huge
challenge. Every nation is grappling with
it in some way: whether it is how to meet
their obligations under the Kyoto Protocol;
involvement in discussions about the post-2012
agreement or preparing to face the impacts
of climate change on their country and their
people. We know all emitting nations must
act to address climate change if we are
to have any chance of reversing the path
our world is on.
The Australian Government’s
ratification of the Kyoto Protocol last
year was an important milestone. It provided
greater opportunity for our countries to
work together and to learn from each other,
as we look for ways to bring about the changes
needed.
Both of our countries
are moving to establish emissions trading
schemes. This will be a cornerstone of our
responses to climate change. It will see
the cost of greenhouse gas emissions reflected
in our economies, into all investment decisions.
Increases in emissions cost. Lower emissions
are rewarded. To be efficient an emissions
trading scheme must create a marginal cost
for increases in emissions and a marginal
benefit for decreases. Both our schemes
do this.
I think it is fair to
say that both governments recognise that
there is no easy time to introduce pricing
for greenhouse gas emissions. It is therefore
gratifying that both nations are looking
to do this in a similar timeframe, given
our close economic ties. If anything, we
are both a little late. From January the
1st this year our countries have already
faced a marginal cost for increases in emissions
under the Kyoto Protocol, yet our businesses
do not yet see the same economic signal.
The sooner this is remedied, the less it
will cost our respective economies to reduce
emissions. It will also assist our countries
to unleash the business opportunities that
lie in low emission technologies.
It makes sound business
sense for organisations to be preparing
for the introduction of emissions trading.
Organisations that will be a point of obligation
under the scheme will be looking both at
how to minimise emissions and how to go
about buying the required credits to meet
obligations. For organisations outside the
scheme, addressing the likely flow-on costs
will be important in minimising the economic
impact on business. Options to minimise
costs include, for example, through energy
efficiency initiatives, reviewing vehicle
fleets and encouraging change in staff behaviour.
New Zealand’s proposed
emissions trading scheme is only one part
of a broader package designed to address
climate change on a number of fronts. Initiatives
have been implemented to encourage new renewable
electricity generation. There are already
very substantial investments in renewables
underway, especially wind and geothermal.
Like other countries,
New Zealand has advantages and disadvantages
arising from our emissions profile. For
us, reducing agricultural emissions is not
as easy as our transition towards more renewable
electricity. Already about two-thirds of
our electricity comes from renewables and
we have a target of reaching 90 percent
by 2025. We recognise that not all renewables
have the same environmental impact. It’s
similar with biofuels. Some are better than
others. We have introduced sustainability
criteria for both biofuels and for electricity.
We expect most of our additional electricity
to come from geothermal and wind, with some
hydro. Our proposed restriction on more
coal or gas-fired baseload generation will
prevent renewables being crowded out by
more fossil fuel generation. The Opposition
disagrees with this stance, but lifting
renewables from 65 percent to 90 percent
is little different to other countries lifting
renewables to 25 percent from a low base.
Investments are being
made in developing and implementing new
technologies, such as second generation
biofuels and new renewable electricity options
like marine and deep geothermal or hot rocks
technology. The New Zealand government,
in partnership with the agricultural industry,
is investing in pioneering research into
reducing emissions and lifting productivity
in that sector. Businesses and households
are being encouraged to improve their energy
efficiency. We are busy implementing the
principle that as a country we should invest
in efficiency where it is cheaper than the
long term costs of extra energy or new generation
capacity, taking into account environmental
externalities. Efforts are being made to
reduce waste to landfill, including recycling
in public places and through the Waste Minimisation
Bill currently before parliament. I know
similar initiatives are underway in Australia.
In terms of outcomes,
our projections see energy emissions levelling
off, in stark contrast to the prior trend
upwards.
Businesses are already
stepping up to the challenge and playing
their part. There are many examples of climate
change-related initiatives that businesses
have developed.
The TZ1 Carbon Exchange
offers a regulated marketplace for trading
and accounting for carbon credits in the
compliance and voluntary markets.
Landcare Research’s
carboNZero programme has supported organisations
in New Zealand and overseas to to measure,
reduce and offset their greenhouse gas emissions.
The conference programme
over the next few days has a strong emphasis
on the carbon markets, both compliance and
voluntary. This is indicative of the general
acceptance that carbon pricing is a reality
which businesses need to manage.
The voluntary market
is growing as many organisations use this
platform to gain experience in buying credits
or to meet their aspirations for carbon
neutrality. It can be a useful mechanism
to drive innovation in developing new ways
to reduce greenhouse gas production.
A number of the speakers
you will hear from over the course of the
next few days will describe their experiences
as they look to position themselves in the
sustainability market and prepare for the
introduction of emissions trading. Others
will be demonstrating the business opportunities
that exist as a result of climate change.
It is important to remember
that your organisation is not alone in its
endeavours to be more sustainable and reduce
its emissions. All businesses in New Zealand
and Australia need to be thinking about
the impact of their actions on the environment.
Sustainability will be fundamental in ensuring
New Zealand and Australian businesses remain
competitive in the global marketplace. Given
our remote location, New Zealand firms need
to be especially mindful of the environmental
impact of their products. This is necessary
to remain competitive in our highest value
overseas markets, where consumers are increasingly
discerning about environmental integrity.
This forum is an excellent
opportunity for you to share ideas, discuss
initiatives, to push boundaries and discover
new approaches.
There is a wealth of
experience and knowledge gathered here for
you to tap into. I am confident you will
find this conference stimulating, and that
it will inspire action.
Talking about climate
change is one thing. The important thing
is to take action.
I trust you will find
this conference of value and I hope you
enjoy your time here in Auckland.
