16 May 2005

Media Statement

Kyoto boost for farmers, environment and power users

This government's ratification of the Kyoto Protocol is set to deliver benefits to farmer shareholders, the environment and power users in an Ashburton hydro scheme. Trust Power's proposed scheme in mid Canterbury has been awarded 58,850 internationally tradable emissions units under the government's Projects to Reduce Emissions programme. If sold at $15 each would be worth $882,750.

"This government is taking a responsible approach to climate change and managing our economy. The key to this is the ratification of the Kyoto Protocol. Under it we are transforming our economy for growth in a world where greenhouse gas emissions are priced," says Convenor of the Ministerial Group on Climate Change, Pete Hodgson.

"The Programme would not exist if we were not in Kyoto. It alone is forecast to help us save over 11 million tonnes of carbon dioxide emissions and has helped bring forward over 800 MW of power projects."

TrustPower's proposed project will utilise water flowing through existing irrigation schemes and has been developed together with the owners of these facilities. The project is forecast to offset the emission of around 66,875 tonnes of carbon dioxide between 2008 and 2012; the first commitment period of the Kyoto Protocol.

"By tackling climate change in this way, this scheme is helping to protect the environment and the unique Kiwi lifestyle for future generations. At the same time, it will help meet the power needs of the growing regional economy in a sustainable way."

Under the Programme, units are awarded to projects that lead to a net reduction in emission against business as usual that would otherwise not go ahead and that are successful in a tender round. To date, 10 million units, which are internationally tradable, have been put out for tender.

The proposal is subject to normal planning processes.

ENDS

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