Hon David Parker
20/09/2007
Climate Change Minister David Parker says
the latest projection for New Zealand’s
carbon balance for 2008-2012 reinforces
the need for the substantial climate change
initiatives the government announced today.
The Minister released the projected balance
for the first commitment period of the Kyoto
Protocol at the same time as the government
announced an emissions trading scheme, which
he said would have a significant impact
on the balance.
The balance, also known as the net position,
is estimated at a deficit of 45.5 million
tonnes of carbon dioxide equivalent (Mt
CO2e). This is an increase of 4.3 Mt CO2e
over last year’s estimate of the Kyoto deficit
of 41.2 Mt CO2e.
Mr Parker said the main factors behind
the rise in the estimated deficit were projected
increases of 4.3 Mt CO2e of emissions from
the agricultural sector, 1.5 Mt CO2e from
the energy sector and 1.3 Mt CO2e from the
transport sector. These increases are offset
by an upwards revision of New Zealand’s
Kyoto allowance of 1.9 Mt CO2e.
The projections reflect the government’s
agreed policies up to April 2007.
“These projections show that unless we
change our economy and our society so that
we use our resources more sustainably, and
reduce our greenhouse gas emissions, our
impact on the environment continues to climb,”
David Parker said.
“The government has taken this projection
into account in formulating the policies
we are announcing today.
“I am confident that we can nearly halve
this projected deficit to 25 Mt or less,
through the implementation of an emissions
trading scheme, and associated initiatives.”
The Ministry’s net position report (Projected
balance of emissions units during the first
commitment period of the Kyoto Protocol)
is published on its website at www.mfe.govt.nz.
Specific emissions data for each sector
are published by the agency responsible,
for example, energy and industry emissions
are available from the Ministry for Economic
Development.
The Treasury’s latest price estimation
for Kyoto compliant emission units calculates
a likely cost of carbon of US$11.90, (NZ
$15.48 at 30 June exchange rates). The report
is available on Treasury’s website at
www.treasury.govt.nz/kyotoliability/.
Using the updated net position and carbon
price, the valuation of the Crown’s projected
liability under the Kyoto protocol as at
30 June 2007 is $704 million (unaudited).
The audited figure will be released with
the Financial Statements of Government in
early October.
