Stronger action in New Zealand's interests on climate change

"Developments over the past week show that the National-led Government's only viable option is to strengthen, not weaken, its commitment to dealing with climate change", Labour's energy and climate issues spokesperson Charles Chauvel says. "This means a commitment to Emissions Trading, but also a recommitment to other measures like research and development that is truly in New Zealand’s interests".

Charles Chauvel's comment was prompted by Climate Change Minister Nick Smith's release on Friday afternoon of New Zealand’s latest net position report under the Kyoto Protocol. The report shows little change from last year's figures, showing a small overall surplus (although a deficit for the Government, the size of which will not be clear until after next month's budget). The overall surplus comes about thanks to lower agricultural emissions thanks to the drought and the recession, forestry, and the fact that the Emissions Trading Scheme (ETS) is now finally in place.

"Without an ETS, New Zealand would be in deficit on its international Kyoto Protocol obligations by around half a billion dollars", Charles Chauvel said, "and the Government would be in a worse position. Last year, we opposed National's weakening of the ETS. But Friday's figures show that it would be very costly if the Government bowed to pressure from some business groups to suspend the ETS altogether".

"Worse, the damage will include opportunity costs as well as direct costs. If the ETS is suspended, there will be continuing uncertainty over carbon pricing. We have already seen such uncertainty lead to a big slow-down in the building of new electricity generation projects.

This was one factor leading the Electricity Commission to warn last month of the danger of looming electricity supply constraints. This is a risk that New Zealand cannot afford to run".

"As well as keeping the ETS, to get New Zealand's actual emissions down, it is clear that the Government also has to do other things in our national interest.

“A big commitment to research and development is required, especially over greenhouse gas emissions from agriculture. National got rid of the Research and Development Tax Credit, and the Fast Forward Fund, which were the previous Government's policy tools to tackle our greatest source of emissions. National's solution is the Global Agriculture Fund (GAF), whose representatives met in Wellington last week".

"But as we warned in December when the fund was announced, New Zealand has little influence over the way that the Fund decides the ownership of any research that comes from the initiative. International Climate Negotiations Minister Tim Groser admitted as much yesterday on the TV3 show "The Nation", referring to the question of ownership and use of any intellectual property produced from the Fund's research as "the elephant in the room".

“With more than 50% of New Zealand's emissions from agriculture, and with New Zealand having committed US$30 million to the GAF, it needs to be crystal clear that New Zealand can immediately benefit from all research produced by the GAF before another cent goes to the Fund".

*Eds:
1. New Zealand's 2010 Kyoto Protocol position as announced on Friday:
http://www.mfe.govt.nz/issues/climate/greenhouse-gas-emissions/net-position/index.html.
2. Last month’s Electricity Commission warning about electricity supply constraints:
http://www.electricitycommission.govt.nz/pdfs/opdev/secsupply/policy/ASA-2009-final.pdf
3. Our December warning about GAF IP:
http://www.labour.org.nz/news/key’s-climate-fund-missed-opportunity
4. Groser's reference yesterday to GAF IP:
http://www.scoop.co.nz/stories/PO1004/S00178.htm

ENDS

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