Trump Clouds Climate Change Policy,NZ Steers Middle Path

INSIGHTS ABOUT THE NEWS - The Govt says the decision by Donald Trump to pull the US out of the Paris agreement will have no influence on its commitment to the treaty or climate change policy.

So far, no other countries have publicly said they will follow Trump’s path, but Trans Tasman’s sister publication, NZ Energy & Environment Business Alert says it will no doubt reinforce the case of those who fear the economic changes reducing emissions will bring.

NZ Ministers were diplomatic, saying, while disappointing, Trump had campaigned on dumping the Paris Agreement, so the decision was predictable. There is no gain from political posturing and demonising Trump.

NZ must stay calm and carry on, while trying to be on the best possible terms with the rest of the world, including the US. Importantly, Ministers said there would be no rethink on NZ’s stance on its Paris commitments.

The Greens say NZ’s reaction should be to increase its commitment, but Climate Change Issues Minister Paula Bennett said this will not happen either and the current target is hard enough: “For NZers to lower their emissions and reach the 2030 target, there is going to have to be significant changes in our behaviours and the emissions that we are emitting.”

In the short term though NZ does appear to be going through a policy hiatus. The results of the review of the Emissions Trading Scheme have yet to publicly emerge and the Govt is putting a lot of store in the work being done by the Productivity Commission, but this final report is not due until June 2018.

The election will also create its own political uncertainties. The two largest parties, National and Labour, believe the ETS should be the primary tool to reduce emissions. But even they have major differences over components of it, most notably the inclusion of agriculture.

The Greens’ stance on the ETS is unclear, while NZ First (after voting for the original scheme) now says it is implacably opposed. The lack of policy direction certainty until after the election will not make it easy for businesses to plan.
Trans Tasman’s sister publication, NZ Energy & Environment Business Alert, is a weekly source providing you with in-depth news, analysis and opinion on NZ’s energy and environment sectors.

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