BusinessNZ’s response to the Climate Change Commission’s first package of draft advice to Government stresses the important role of business in achieving emissions reductions.

BusinessNZ Chief Executive Kirk Hope says it supports New Zealand’s transition to a net zero emissions future and the development of a long-term whole-of-energy strategy.

"Cross-party support for emissions budgets is essential and so too is keeping the focus on net zero carbon emissions.

"Focusing on gross rather than net emissions means the Commission is asking New Zealanders to pay more than necessary to achieve our net-zero goal."

Mr Hope says the Emissions Trading Scheme must be allowed to do its job. Other non-price interventions should focus only on outcomes and promote efficiency.

"Interventions should not disincentivise innovation. That could see companies transferring overseas and more, not less, fossil fuel use. Industries lost from New Zealand would mean a loss of jobs."

Mr Hope says the submission process is a good opportunity to test the Commission's assumptions - many of which BusinessNZ has questions about.

In addition, he says reductions modelled for some sectors may be overly ambitions and may adversely affect other parts of the economy if not achieved.

BusinessNZ Energy Council (BEC) Executive Director Tina Schirr says the Commission’s transport emissions reductions are ambitious and may not represent a realistically achievable rate of change.

"An integrated energy system is needed, taking into account the role electricity, natural gas, liquid biofuels and biogas and demand-side participation will play in reducing emissions," Ms Schirr says.

The BusinessNZ response addresses several other matters including infrastructure repurposing, energy targets, building performance standards, urban planning, agriculture, and forestry.

Read the full submission here.

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