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GROWING MARKET HUNGRY FOR SUSTAINABLE PRODUCTS AND SERVICES

Environmental Panorama
International
June of 2007

 

New Zealand businesses enjoy increasingly lucrative opportunities to cash in on the growing market for sustainable products and services. There is high demand in New Zealand for businesses to provide solutions specifically for this market.

In 2005, Moxie Design Group commissioned research to understand the New Zealand equivalent of the LOHAS (Lifestyle of Heath and Sustainability) market. This market of consumers actively seeks products and services that reflect their environmental and social values. LOHAS consumers represent a sizable market in the first world (roughly US$550 billion).

The New Zealand research led by Moxie provided a unique insight into the size and makeup of the New Zealand market. Based on differences to the international market, Moxie termed the New Zealand group of consumers Solution Seekers. In 2005, Solution Seekers were 26% of New Zealand’s population.

Roughly 33% of New Zealanders can now be classified as Solution Seekers, as shown by a repeat of the research in early 2007. This market is anticipated to grow, given the current media and political attention on climate change and other sustainability issues.

International LOHAS conference
Moxie Design recently attended the LOHAS 11 Forum in Los Angeles. The forum was a sell out event, and accompanied by a large media presence.

“A real highlight was the opportunity to share our results from the New Zealand research, and understand developments in the global LOHAS market”, said Peter Salmon, Moxie Design Group.

“It is clear that there are clear similarities and subtle nuances in the attitudes and behaviours of the various national markets”, said Peter.

New Zealand a leading LOHAS country
Feedback at the LOHAS forum was that New Zealand is internationally perceived to be 'the original LOHAS country'.

“The New Zealand Solution Seeker market is potentially bigger and more mainstream than we think. New Zealand is perceived as a destination of choice - Japanese LOHAS consumers look to New Zealand as a desirable place to retire. New Zealand has the opportunity to provide innovative green products and services for this market,” said Peter Salmon.

There is demand in Japan, Taiwan, South Korea and China for New Zealand businesses to provide solutions specifically for the LOHAS market. In some Asian countries, LOHAS shops and shopping centres, restaurants and spas have started to appear in major cities.

Moxie intends to help New Zealand exporters target LOHAS markets by helping businesses design and deliver brand, marketing and delivery programs.

For more information, visit the Moxie Design website.

Waste news
Resene Paints show recycling leadership
Resene Paints launched their nationwide Paintwise scheme in June 2007, a product stewardship scheme that recycles unwanted paint and its packaging.

Environment Minister David Benson-Pope congratulated Resene on becoming the first manufacturer to offer nationwide recycling of paint. The Minister said that innovative companies in New Zealand are providing customers with the option of buying sustainably produced goods, and the facilities to recycle those goods.

The Minister said the Government plans to encourage more such product stewardship schemes which share the responsibility for the disposal of a product throughout its life cycle.

The Waste Minimisation (Solids) Bill, currently before the Local Government and Environment Select Committee, includes provisions for increased support for product stewardship schemes, and will ensure that those producers who accept their environmental responsibilities are not undercut on price by those who won’t.

Visit the Ministry’s waste issues web page for the latest information.

Targets in the New Zealand Waste Strategy: 2006 Review of Progress
The Ministry for the Environment’s 2006 review of the New Zealand Waste Strategy targets shows good progress in recycling and landfill management since the Strategy was released in 2002. It also highlights inconsistencies in the management of waste in New Zealand.

Areas of achievement against the targets are:

access to community recycling and green waste schemes
increased central government engagement with businesses
development of guidelines to improve the management of landfill sites and hazardous wastes.
The review recommends that future waste work focus on areas where limited progress has been made under the strategy targets. These areas include organic waste (including food wastes), construction and demolition waste, and contaminated sites.

Tourism Strategy update addresses environmental concerns
New Zealanders can comment on the future of New Zealand tourism, via an update to the New Zealand Tourism Strategy. The draft New Zealand Tourism Strategy to 2015 was released for consultation in May 2007. Since the original Tourism Strategy was written in 2001, new challenges have emerged for the tourism sector and dramatic changes have occurred in the domestic and global environment, such as increasing expectations for quality and environmental sustainability from visitors.

The Minister of Tourism, the Hon Damien O’Connor, notes that there will be intensified pressures from climate change, rapid evolution in consumer attitudes and expectations, and further challenges to New Zealand’s security and biosecurity.

“The extent to which New Zealand, and the tourism sector, transform these challenges into opportunities will have a major impact on our future prosperity. I sense a strong desire throughout the sector to create a tourism industry that is a global leader in sustainability”, he said.

Tourism is a major part of New Zealand's economy. An agreed long-term vision and strategic approach for tourism is essential. The draft New Zealand Tourism Strategy 2015 aims to ensure financial success, customer satisfaction, and protection and enhancement of our physical environment.

“The overall sustainability of our nation is central to the future of our tourism industry and will significantly impact on how we can market New Zealand to the world. Tourism’s and the nation’s ongoing challenge is how, together, we step up to the mark, and sustain the meaning of 100% Pure New Zealand, keeping it alive for the world to admire and respect”, said Mr O’Connor.

“I ask the tourism sector to pick up the challenge - to reach beyond what is proposed in this draft Strategy, to deliver bold and aspirational results that will inspire the rest of New Zealand”, said Mr O’Connor. To look at the Strategy website, download the draft Strategy, and provide comments on the electronic feedback template, go to www.nztourismstrategy.com. The deadline for comment is midday, Wednesday 27 June 2007.

If you are a tourist operator, please visit the Ministry of Tourism website for practical tips on implementing sustainable tourism.

Government work on climate change initiatives
Energy Efficient Homes
Budget 2007 provides $66.95 million over the next four years to help New Zealand families live in warm, dry, healthy homes that are energy efficient and better for the environment. The new funding - known as the 'EnergyWise Homes package' - builds on existing government programmes, such as the solar water heating programme, home insulation and clean heating retrofit programmes, and the review of the Building Code. This package also includes spending $5.4 million more on the installation of clean forms of heating for low-income households in areas of poor air quality.

Businesses in the energy efficiency, insulation and building sector have the opportunity to provide products and services for this market.

Some of the main elements in the package are:

$23 million for an interest-free loans scheme to help homeowners pay for energy efficiency and clean heating upgrades
$15.3 million to trial and implement a Home Energy Rating Scheme, a tool to measure the energy efficiency of a house and provide this information to home buyers
$14.1 million for the Energy Wise Home Grants scheme, to continue with 12,000 energy efficiency retrofits a year for low-income households.
Emissions trading
Government will make decisions on New Zealand's move towards a greenhouse gas emissions trading regime in coming months.

"An emissions trading scheme could provide New Zealand businesses with a flexible way of reducing their carbon footprint, and help put New Zealand on the path to a sustainable future,” Climate Change Minister David Parker said.

A cap-and-trade emissions trading scheme is a market-based means of reducing greenhouse gas emissions.

"Many details need to be considered, before a final decision can be taken. These include when different sectors come in, the transitional path for emissions, and the stringency of the targets once they are in. The Government will consider these issues in detail in the coming months”, said Minister Parker.

For more information, please visit the Ministry's climate change webpages.

InterCity and Pacific Blue drive towards carbon neutrality
InterCity Group is on-track to attain carboNZero status for its corporate emissions by winter 2007, and intends to achieve carbon neutral status for its entire national tourism and transport operation within three years.

“We are philosophically committed to sustainability, and believe that the carboNZero programme will help ensure we are adopting effective, credible measures to help reduce our emissions,” said Malcolm Johns, CEO at InterCity Group.

InterCity Group, which includes Newmans Coach Lines, InterCity Coachlines and Kings Dolphin Cruises & Eco Tours carries approximately 1.5 million passengers nationwide each year. This includes 500,000 international visitors per year.

“We encourage people to get out of their cars and use public transport. Independent assessments indicate an international visitor on a 7 to 10-day tour of our country could generate up to a 90 per cent lower carbon footprint if they used InterCity and Newmans transport services than if they drove themselves in a modern 2.0 litre rental car,” said Johns.

Prime Minister Helen Clark welcomed InterCity's aim to become the world's first carbon neutral public transport company.

"This is a perfect example of how businesses can leverage off, and build on, the New Zealand brand. I congratulate InterCity's decision to show leadership and become carbon neutral. It is good for business and will help in achieving the Government's aim for New Zealand to become the world's first truly sustainable and carbon neutral nation," Helen Clark said.

In a similar move, Pacific Blue NZ has launched a Carbon Offset scheme, a first for airlines operating in New Zealand. Pacific Blue NZ travellers now have the opportunity to offset the greenhouse gas emissions produced by their flights. This option is offered at the ticket booking stage, the cost of carbon offsetting added into the ticket price.

"Any move which allows passengers to offset their individual flight emissions is a positive step in our bid to negate future climate change," said Mr Parker, Minister Responsible for Climate Change Issues.

"The greenhouse gas emissions caused by air travel are a key issue for New Zealand, with our geographic location and the importance of exports and inbound international tourists to our economy," Environment Minister David Benson-Pope said.

"This Government is taking bold steps towards carbon neutrality in the public sector, and asking all New Zealanders to play their part in mitigating climate change. I'm encouraged to see innovative companies, such as Pacific Blue NZ, show leadership in the business sector, and giving Kiwi consumers the opportunity to reduce their own carbon footprint," said Mr Benson-Pope.

+ More

SIGnals Issue Nine - June 2007, INFO199 - Welcome to this issue of SIGnals, the New Zealand Ministry for the Environment's e-newsletter linking you to advice and information on what's happening in the world of sustainable business.

SIGnals contains updates, tools, resources and case studies focused on helping industry compete and grow sustainably.

If you have any questions or comments, please contact us via signals@mfe.govt.nz (or to have your name added or removed from the SIGnals mailing list), or phone (04) 439 10000.

Links to additional Ministry projects and tools
The latest on sustainable industry initiatives
Budget 2007 provides for sustainability initiatives
In the recent Budget 2007, the Government allocated funding for six sustainability initiatives announced in the Prime Minister’s statement at the opening of Parliament.

These six initiatives will help put New Zealand on the path to becoming a sustainable nation. Sustainability offers significant opportunities to New Zealand businesses, through new markets, cost savings through efficiency, enhanced corporate reputation and smarter risk management.

The six sustainability initiatives are:

Helping households towards sustainability will raise awareness among householders about sustainability issues and encourage them to take simple steps to become more sustainable. Such steps including using electricity and water more efficiently, and better managing waste by recycling and composting.

The Ministry for the Environment is leading the programme which has a budget of $6 million over three years.

Business partnerships for sustainability will promote and develop sustainable business practices in New Zealand.

The three main elements of the programme are:

Marketing sustainable businesses and helping sustainable businesses access new markets here and overseas
Developing sustainability strategies and action plans for sectors, such as tourism, food and beverage, aquaculture and agriculture
Working with existing networks, such as the NZ Business Council for Sustainable Development and the Sustainable Business Network, to enhance business sustainability programmes.
The Ministry of Economic Development is leading this programme, which has a budget of $3 million over three years.

An example of the kind of work that could occur under this initiative is the recent sustainable business practice seminar series delivered by the Wellington Regional Chamber of Commerce and Ministry for the Environment. These seminars have recently been conducted in the lower North Island and Marlborough. Approximately 450 organisations attended.

Enhanced verification of eco-friendly goods and services. The Government will develop an online database to give consumers and businesses guidance on which goods and services have been sustainability produced.

It will also develop a verification system and criteria so that any business that wants to trade on sustainability will know what to look for, before they commit to any commercially available eco-label or sustainability programme.

This programme will include eco-labels such as the Government’s Environmental Choice and sustainable management practice programmes such as Landcare Research’s CarboNZero.

The Ministry of Economic Development is leading the programme, which has a budget of $7.4 million over four years for this and sustainable government procurement.

Government to buy eco-friendly goods and services, using its purchasing power to grow the market for environmentally friendly products. It will integrate sustainability into a single procurement policy, and require sustainably produced goods and services to be used whenever possible

This programme will be closely aligned with the development of eco-labels, standards and verification processes to assist procurement decisions and influence businesses.

The Ministry of Economic Development is leading the programme, which has a budget of $7.4 million over four years for this and the enhanced eco-verification programme.

One example of a current programme to implement this initiative is the Govt3 programme, which helps central government agencies become more sustainable. This programme includes Govt3 agencies buying environmentally friendly products.

Public service takes lead in becoming carbon neutral, with six lead agencies – the Ministry for the Environment, Ministry of Health, Ministry for Economic Development, Inland Revenue Department, Department of Conservation and Treasury - will be carbon neutral by 2012. All remaining core government departments will be on the path to carbon neutrality by 2012.

The Ministry for the Environment is leading the programme, which has a budget of $10.4 million over three years.

Towards zero waste. Waste initiatives announced in February 2007 build on existing waste management and minimisation work, and include establishing a network of public recycling facilities.

A network of public recycling facilities will be placed in larger cities and tourist destinations. There is also a programme that will assist with providing recycling facilities at major public events, to encourage people to recycle while out and about.

Three sites will be piloted during the first year before expanding the programme nationally in high population areas.

The Ministry for the Environment is leading the programme (in partnership with local government) which has a budget of $4.5 million over three years.

Implementation of sustainability initiatives
Policy for these initiatives is in the initial stages of being drafted and stakeholders will be consulted before it is finalised.

The Ministry for the Environment and the Ministry of Economic Development are hosting workshops to share progress on the sustainability initiatives. Workshops will be held in:

Auckland - 20 June, 10.00-12.30 pm (Room 1, Level 4, Sky City Convention Centre)

Wellington-27 June, 1.00-3.00 pm (Deloitte Lounge, level 4, Westpac Stadium Function Centre)

Christchurch - 13 July, 2.00 - 4.00 pm (Dickson Room, Westpac Canterbury Centre, Cashel Mall)

These workshops are the first of a number of meetings between the Government and business on the sustainability initiatives, and take the place of the regular Ministry/Industry liaison meetings for this quarter. The Government will create further opportunities for business to engage with these sustainability initiatives. If you would like to attend one of the above workshops, please RSVP to industry.liaison@mfe.govt.nz by 22 June 2007.

For further details on all initiatives, plus information on government work programmes in these areas, please visit the Ministry's website.

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Warm up your winter with the right wood burner
Media release: 22 June 2007

New research released today by the Ministry for the Environment reveals that installing pellet burners or approved wood burners makes homes warmer and improves air quality.

New Zealand has good air quality in most locations for most of the time yet wood and coal, used for home heating, affects air quality in around 30 locations, particularly during the winter. Just over half of New Zealanders live in these affected areas.

Domestic solid fuel burners are the main source of air pollution in most urban areas because they emit fine particles. These particles cause significant health problems, including respiratory diseases, asthma attacks, reduced immunity and even premature deaths.

The Ministry introduced the national environmental standards (NES) for air quality in 2005 to address this. It later commissioned a national review of wood burners to check if those offered for sale in winter 2006 matched their test results in both design and performance. The Ministry worked on the review with Environment Canterbury, Nelson City Council and the New Zealand Home Heating Association.

“Compliance was not as good as we’d hoped but not surprising because until the air quality national environmental standards came into effect in September 2005 there was no national regulation of wood burners,” says Ministry general manager, Sue Powell.

“Since the review, manufacturers have been working hard to improve their products and we expect better compliance in future.

“The Ministry’s list of approved wood burners has been updated to reflect today’s results and I encourage all buyers, retailers and installers to take advantage of the review findings.”

The Ministry tested real-life emissions from nine NES-compliant wood burners and four pellet burners that were installed in Tokoroa homes last winter.

Emissions of fine particles produced by the NES-compliant burners was almost a third less than older, non-compliant burners tested in Tokoroa the previous winter.

“The test gives us confidence that the emissions from NES-compliant burners are less harmful than from older wood burners. And wood pellet burners are one of the most sustainable forms of solid fuel heating commonly available,” says Ms Powell.

Additional information
The following reports are available from the Ministry’s website at: http://www.mfe.govt.nz/publications/energy/

Warm homes technical report: Real-life emissions testing of wood burners in Tokoroa
Warm homes technical report: Real-life emissions testing of pellet burners in Tokoroa
The National wood burner performance review – Phase 1 is available at: http://www.mfe.govt.nz/publications/air/

The list of approved wood burners is located on the Ministry’s website at: http://www.mfe.govt.nz/laws/standards/woodburners/authorised-woodburners.html

More information about making your home warmed is available from the Ministry for the Environment’s Warm Home project: http://www.mfe.govt.nz/issues/energy/warm-homes/

 
 

Source: New Zealand - Ministry for the Environment (http://www. mfe.govt.nz)
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