90% renewables ambitious but achievable - Contact

20 September 2007

90 per cent renewables ambitious but achievable - Contact

Contact Energy today said the Government’s target of 90 per cent of electricity coming from renewable sources by 2025 was ambitious but possible, and the announcement of an emissions trading scheme was an important step towards achieving it.

Contact Chief Executive, David Baldwin, said today’s announcements were significant in that all greenhouse gases and all sectors will eventually come under the emissions trading scheme.

“Contact has advocated that carbon must be priced across the economy and through a market-based mechanism, rather than through taxes levied on some sectors but not others. Today’s announcement takes a whole of economy approach to the pricing of greenhouse gas emissions and, as a result, has the best chance of delivering emissions reductions.”

Mr Baldwin said there was still detail to be clarified around the establishment and operation of the emissions trading market, but he supported the announcement that there would be no free credits given to any part of the electricity generation sector.

“Ensuring there are no free credits for electricity generators will ensure New Zealand retains a competitive and fair electricity market and that all companies are equally incentivised to reduce greenhouse gas emissions.”

Mr Baldwin said targeting 90 per cent of New Zealand’s electricity from renewables by 2025 was an ambitious target, but that climate change warranted bold action. Mr Baldwin said Contact’s $2 billion renewable investment programme would be important in helping to meet this goal.

“If the 90 per cent target is to be met, there will need to be very clear direction and support from government on the consenting of renewable projects. Strong investment in the national electricity transmission grid will also be required,” he said.

“We will only reach the 90 per cent target if renewable projects can be efficiently consented under the Resource Management Act and we are hopeful that this issue will be addressed in the Government’s final Energy Strategy which is expected before the end of the year.”

Mr Baldwin said he hoped the emissions trading scheme would be durable and supported across parliament. He said Contact would continue to work with government as the trading scheme was developed and implemented.

ENDS

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