David
Parker29 April, 2008
An independent report finds the New Zealand
Emissions Trading Scheme will produce important
benefits for air, water and land, as well
as for the climate. There will also be some
challenges to manage.
Climate Change Minister
David Parker says he welcomes the report,
prepared by a team led by the Cawthron Institute.
The report identifies the high-level environmental
impacts of the emissions trading scheme
and associated policies, ways to deal with
these impacts, and terms of reference for
further environmental assessment work.
“The report points out
that actions taken under the scheme to reduce
domestic greenhouse gas emissions will also
assist the environment in other ways.
“For example, the scheme
will encourage forest plantings, thus reducing
soil erosion, supporting biodiversity in
some areas and improving water quality.
Reductions in fossil fuel use are expected
to improve air quality and human health.
In the longer term, the scheme should also
reduce land-use intensification.”
The report also identifies
the potential for some negative environmental
consequences that could occur without careful
management, the Minister said.
“For example, policies
to promote forestry could have a negative
impact on biodiversity, if exotic forestry
displaces indigenous vegetation. The report
also points to increased pressure on land
and water resources to generate renewable
electricity.
“In this way the report
confirms what we already know, namely, that
in addition to the emissions trading scheme,
complementary measures will continue to
be important in reducing New Zealand’s emissions
and improving air quality, land use, biodiversity
and water supply,” David Parker said.
“These include policies
such as the New Zealand Energy Strategy,
New Zealand Energy Efficiency and Conservation
Strategy, Sustainable Land Management and
Climate Change Plan of Action, New Zealand
Biodiversity Strategy, and Sustainable Water
Programme of Action, as well as the Resource
Management Act.
“This report will help
the government prioritise its climate change
policy work. It also provides a platform
from which to build a long-term climate
change strategy that is better for New Zealand’s
environment.”
The full scoping report
can be found on the Climate Change Solutions
website at www.climatechange.govt.nz/nz-solutions/trading-scheme-reports.shtml
See also: www.cawthron.org.nz
+ More
Emissions trading is
effective and affordable
David Parker30 April,
2008
A summary of economic modelling shows emissions
trading is an effective approach to reducing
New Zealand’s greenhouse gas emissions in
the long term, Climate Change Minister David
Parker says.
The report summarises
general equilibrium modelling undertaken
by Infometrics for the government’s Emissions
Trading Group and the Climate Change Leadership
Forum since October 2007.
“As we stated last October,
the impact of New Zealand meeting its commitments
under the Kyoto Protocol on gross domestic
product is easily manageable.”
“This report shows that
the economy will still grow and New Zealanders
will continue to get wealthier. New Zealanders'
private consumption per capita is forecast
to expand by 54 percent by 2025. With an
emissions trading scheme, private consumption
per capita is forecast to grow by 51 percent
instead,” Mr Parker said.
“It is important to
remember that the emissions trading scheme
does not cause a loss in economic welfare.
Any loss in economic welfare is caused by
the nature of the international commitments
New Zealand faces and the emissions trading
scheme is an effective way of managing those
commitments. It is a significantly more
effective way of managing our commitments
than having no domestic carbon price and
the government buying overseas the emission
units we need, paid for by higher income
taxes.
“In addition, the modelling
suggests that the vast majority of industries
participating in the emissions trading scheme
will grow strongly between now and 2025.
This includes oil refining, electricity
production, and meat and dairy processing.”
“What the modelling
doesn’t do is look at the risks of not honouring
our commitments, for example, the economic
impact of countries in the European emissions
trading scheme imposing duties on our exports,”
David Parker said.
“Any structural change
to the economy comes with adjustment costs
and the government is designing the emissions
trading scheme in ways that minimise and
fairly share these costs. In particular,
the government is determined to protect
New Zealand’s international competitiveness,
household incomes and the environment.
“It is never possible
to model all the costs and benefits of any
major reform such as an emissions trading
scheme. However, the government will closely
monitor progress and act to moderate any
unforeseen impacts,” David Parker said.
The full report is available here:
www.mfe.govt.nz/publications/climate/general-equilibrium-analysis-apr08/index.html
