2020 Emission Reduction Target Challenging

The Greenhouse Policy Coalition says an emission reduction target of between 10% and 20% below 1990 levels is ambitious and has the potential to be costly for business and consumers, so it is essential that the target is conditional on a comprehensive global effort to reduce emissions.

Catherine Beard, executive director of the Greenhouse Policy Coalition says economic analysis undertaken by the government shows that a 15% reduction in emissions from 1990 levels by 2020 will cost each New Zealander $1400 a year, or $5,600 in reduced income per household of 4.

“The only way these costs can be reduced is if all our major trade competitors take similar action to reduce emissions, including the large developing countries that currently do not have emission reduction targets.”

“If all countries are facing similar costs, then the risk of our firms becoming uncompetitive diminishes.”

Catherine Beard said the other factor that will be important in reducing the cost to New Zealand will be how many trees are planted between now and 2020, which will be needed to replace all the trees that will be harvested about that time.

“The major challenge we face in reaching this target is a growing population, a high percentage of emissions from agriculture and transport and not enough time for new low carbon technology options to kick in.”

ENDS

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